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An observation that I have seen various people on Twitter make is the convergence towards the Modern Modern Theory (MMT) view with regards to the recent fiscal policy debate. The debate is about overheating, and not whether bond market or currency market vigilantes will block expansionary fiscal policy. The inter-temporal governmental budget constraint -- and even its ugly stepchild, the r versus g debate -- is nowhere to be seen. There is more to MMT than just the Functional Finance parts, but that was the part of MMT that always generated the most heat in online debates. Should MMTers declare victory?Partial victory. Winning some early battles is not winning the war. There's still a long way to go in educating the voting public on MMT and its policy implications.Bond EconomicsAll
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An observation that I have seen various people on Twitter make is the convergence towards the Modern Modern Theory (MMT) view with regards to the recent fiscal policy debate. The debate is about overheating, and not whether bond market or currency market vigilantes will block expansionary fiscal policy. The inter-temporal governmental budget constraint -- and even its ugly stepchild, the r versus g debate -- is nowhere to be seen. There is more to MMT than just the Functional Finance parts, but that was the part of MMT that always generated the most heat in online debates. Should MMTers declare victory?Partial victory. Winning some early battles is not winning the war. There's still a long way to go in educating the voting public on MMT and its policy implications.Bond EconomicsAll
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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An observation that I have seen various people on Twitter make is the convergence towards the Modern Modern Theory (MMT) view with regards to the recent fiscal policy debate. The debate is about overheating, and not whether bond market or currency market vigilantes will block expansionary fiscal policy. The inter-temporal governmental budget constraint -- and even its ugly stepchild, the r versus g debate -- is nowhere to be seen.Partial victory. Winning some early battles is not winning the war. There's still a long way to go in educating the voting public on MMT and its policy implications.There is more to MMT than just the Functional Finance parts, but that was the part of MMT that always generated the most heat in online debates. Should MMTers declare victory?