L. Randall Wray: Time for a New Approach for Unemployment?

The video discusses the internationalization of the RMB, capital account liberalization, and the evolution of the US financial system. It highlights Minsky's views on financial crises and the importance of regulatory responses. The concept of a job guarantee program is explored as a means to achieve economic stability. The discussion also covers China's currency policy and the need for a free-floating exchange rate to maintain fiscal sovereignty.

What is one of the preconditions discussed for the internationalization of the Renminbi?

• Trade surplus

• Capital account liberalization

• Increased foreign investment

• Higher interest rates

Which country's economic issues were linked to capital account liberalization?

• Germany

• China

• Japan

• United States

What term did Minsky use to describe the unstable form of capitalism that emerged in the US?

• Global capitalism

• Industrial capitalism

• Money market capitalism

• Managerial capitalism

What is the main challenge in finding good borrowers according to the discussion?

• Government regulations

• Lack of financial resources

• Scarcity of creditworthy borrowers

• High interest rates

What is the primary goal of the Job Guarantee program?

• To ensure full employment

• To increase GDP

• To reduce inflation

• To stabilize currency

How does the Job Guarantee program differ from the New Deal programs?

• It focuses on private sector employment

• It is a temporary measure

• It reduces government spending

• It is a permanent institutional feature

What is a key benefit of an employed buffer stock over an unemployed buffer stock?

• Increased government control

• Higher wages

• Skill maintenance and improvement

• Lower taxes

What is the potential risk of maintaining a pegged exchange rate for China?

• Currency devaluation

• Loss of fiscal sovereignty

• Increased inflation

• Trade deficits

Why is a free-floating exchange rate important for fiscal policy?

• It increases foreign investment

• It reduces trade barriers

• It allows for full fiscal sovereignty

• It stabilizes the economy

What was a predicted consequence of the European monetary union's structure?

• Stable exchange rates

• Higher employment rates

• Loss of fiscal policy space

• Increased economic growth