Friday, October 16, 2009

Maverick Economist takes on Global Macroeconomics

To what extent is capital and fiscal stimulus better allocated by sortition juries than conventional financial sector? Ann Petifor and the New Economics Foundation argue that the public sector should distribute the free money that is now generated by fractional reserve banking. And I wrote that fiscal stimulus, or stimubucks, can be tightly controlled by sortition juries, tighter than either a conventional financial system or government that sways in the winds of political interests. He proposes fiscal stimulus works when there is idle resources, which clearly is true in the United States. He points that monetary policy tools such as expanding base money by purchasing government only works when the problem is illiquidity, not bank insolvency. And the money support to the banks is not going to individuals and businesses.

The Maverick Economist also tooks about the issues of global fiscal stimulus. He talks about Islamic mortgages and cases of mortgagors sharing in upside opportunities--that is if the mortgagee sells the house for more than they paid for it, the mortgagor get ssome of the benefit. And he points out the problems for the unemployed or undemployed. But he misses a true share-economy mortgage, replace the mortgage with a fixed payment and interest with a share of the person's income and let this get propagated.

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