Sunrise Movement Chicago. Photo by Charles Edward Miller.
Continuing the discussion on a Green New Deal, PBI Chair Ellen Brown devotes her latest article in Truthdig to examining the models of China and Japan. Both countries have been adding new money to the economy very successfully simply by creating it on the books of their own banks. Prices remain extremely stable with under 2% inflation, confounding classical monetary theorists.
China and Japan differ from the US in significant ways. Their banking laws allow their central banks to work with their governments in setting fiscal and monetary policy. Ellen recommends the US abandon the obsolete theories on which policymakers have relied and instead embrace this now proven model:
“What U.S. presidential candidates from both parties should talk about is how to modify the law so that Congress, the administration and the central bank can work together in setting monetary policy.”