by Summary:
For the record.My view on this is that it fails to correctly present the MMT position (again). MMT is a macroeconomic theory based on institutional analysis rather than being either an axiomatic system like conventional economics or a socio-economic and political analysis like Marxian economics. That is to say, MMT is framed in terms of the existing world system. It is an alternative to "neoliberalism," in so far as it is in the Paleo-Keynesian tradition (versus the New Keynesian or Samuelson New Synthesis). That is to say, as a macroeconomic theory it does not deal directly with social and political issues that go beyond the field of economics as it is currently practiced.However, MMT also has implications for political economy and policy, although as an economic theory it doesn't
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
For the record.My view on this is that it fails to correctly present the MMT position (again). MMT is a macroeconomic theory based on institutional analysis rather than being either an axiomatic system like conventional economics or a socio-economic and political analysis like Marxian economics. That is to say, MMT is framed in terms of the existing world system. It is an alternative to "neoliberalism," in so far as it is in the Paleo-Keynesian tradition (versus the New Keynesian or Samuelson New Synthesis). That is to say, as a macroeconomic theory it does not deal directly with social and political issues that go beyond the field of economics as it is currently practiced.However, MMT also has implications for political economy and policy, although as an economic theory it doesn't
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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For the record.
My view on this is that it fails to correctly present the MMT position (again).
MMT is a macroeconomic theory based on institutional analysis rather than being either an axiomatic system like conventional economics or a socio-economic and political analysis like Marxian economics. That is to say, MMT is framed in terms of the existing world system. It is an alternative to "neoliberalism," in so far as it is in the Paleo-Keynesian tradition (versus the New Keynesian or Samuelson New Synthesis). That is to say, as a macroeconomic theory it does not deal directly with social and political issues that go beyond the field of economics as it is currently practiced.
However, MMT also has implications for political economy and policy, although as an economic theory it doesn't venture into these domains. For example, the adoption of the MMT JG is not a policy choice. It is an economic requirement for optimizing use of available real resource to reduce or eliminate waste as a form of inefficiency.
Individual MMT economists also take policy stances based on potential that MMT shows but independently of MMT as an economic theory. This can be obscured by their appealing to MMT in many cases to justify their views. But there is nothing in principle preventing different political approaches using the knowledge generated by MMT.
The arguments and rationale criticizing MMT presented here are generally social and political rather than concerned with economic economic theory. That is they involved economic understanding applied to policy.
The economic issue here is at bottom economic rent, rent-seeking, and rent extraction based on asymmetry and leading to greater asymmetry. Almost MMT economists and MMT allies like Michael Hudson, James K. Galbraith, and Steve Keen address such issues, as well as other social and political issues. Their views of these matters is diverse.
Warren Mosler comes in for specific criticism, but the record in incorrect. I have discussed this with him and his position is rathe to preempt economic rent, rent-seeking, and rent extraction to address inequality and its social, political and economic effects before clawing back the residual using taxation. Using taxation as the first tool is not the most efficient or most effective way to go.
Bill Mitchell addresses the totalitarian effects of neoliberalism and the necessity for national sovereignty including currency sovereignty to address this scourge that threatens the world system socially, politically and economically. Of course, Michael Hudson reputation in this regard is well-known.
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