Easy Economics
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Reviewing Modern Monetary Theory
Modern Monetary Theory has been a popular topic in political and economic discussions in response to the elusive question "How much government debt is too much debt?". In this academic review, I discuss what MMT is, the history of the theory which underpins it, and the various reasons why this theory breaks down explaining why MMT has never and can never be seriously considered in its currently proposed form.
Opening Up Open Market Operations
The Federal Reserve is currently conducting its 2nd major episode of Quantitative Tighting ever. Because of the young nature of this policy tool, I have seen mass amounts of misinformation and confusion online, in the classroom, and in the workplace. In this article, I summarize what Open Market Operations is, through which channels it injects or removes money from the economy, and how academic research estimates its impact on various elements of the economy.
Why has College become so Expensive?
With the resumption of student loan payments and interest accrual this month, I thought it appropritate to take take a step back and piece together the mystery that is tuition inflation. For years, the cost of attaining a degree has far outpaced the inflation of other goods and services in the United States. The reasons for this growth may surprise you.
Analyzing the Student Loan Moritorium and its Conclusion
In my latest article, I explore what student loan borrowers have been using their "extra" cash for during the pause on Federal student debt payments beginning in March of 2020. I find that most borrowers did not take this opportunity to pay down student loan balances. Instead borrowers used the liquidity to save (2020-2021), offset inflation (2021-2023), and take on other forms of debt. As a result, the coming resumption of student loan payments will impose a strong headwind on over 40 million households.