Mike Norman Economics

Paul Krugman’s macro framework is leading him astray. Stephanie Kelton takes on Paul Krugmen. It looks like Albert Edwards is right, MMT has excellent models. MMT is becoming confident.He used the same model to fight the deficit scolds, who were pushing austerity during the Great Recession. (And he deserves credit for being on the right side of that debate!) But his defense of deficits was always contingent on being in a depressed economy, where he argued that monetary policy had become...

Like Powell last week and other mainstream economists, Summers uses inapplicable arguments and totally misrepresents the MMT position.

They trying to make criticizing Zionism illegal by calling it anti-Semitism. If Iran was doing this to women, the disabled, and children there would be an outcry in the media and Western politicians would be up in arms. But no, nothing,  we are just told Iran is the force for terrorism in the World. YISRAEL KATZ: [translated] This report is another chapter in the theater of the absurd produced occasionally by the United Nations Human Rights Council, another hostile, mendacious and slanted...

I have trouble believing the pie chart which shows that 30% of the British population hold mild anti-Semitic views. I've only met one person in my whole life who was anti-Semitic, and he was a raging right-winger. Anyway, the British Labour Party has hardly any.  Anti-Capitalism is NOT Anti-Semitism The media are trying to turn the 1% into a protected minority Kit Knightly A political cartoon from 1883, depecting four notable Robber Barons being supported by their workers. Is this...

Here's why I'm not worried about U.S. China trade talks falling apart.

We are frequently told here to study Von Mises, as Abba Lerner did, who trained under him at the LSE.  Also, as government deficit spending has a multiplier effect creating more demand, and so the private sector will expand creating more jobs, while new businesses will start up.  So, society starts working harder and if inflation does set in and taxes need to be raised, the tax burden is shared by more people many of whom will be on higher wages as there will be more managers and...

On Warren Mosler's website his economic views have been bearish for something like the last four years. I cannot understand this.Not only was the deficit (something he talks about all the time) last year the highest in 6 years (both nominally and as a percent of GDP), but this year it will be even higher. In fact, it's already three-fourth's of last year's total and we're not even halfway through the fiscal year. Shouldn't he be bullish?Moreover, government spending is going to break another...

Sounds like Rogoff hasn't changed from his glory days: The original feud was most famously between Stiglitz and Rogoff. Stiglitz, who led the movement at the World Bank to throw off its support for austerity, memorably claimed that IMF was staffed with “third rate” economists. https://www.nakedcapitalism.com/2013/10/ken-rogoff-loses-it-calls-criticism-of-errors-in-debt-paper-a-witch-hunt.html Also: Carmen Reinhart and Kenneth Rogoff published a 2010 paper, Growth in the Time of Debt, which...

Still occupied.Now that MMT has gone viral, it's impossible to keep up anyway. I haven't had time to look at the feeds but have been keeping abreast as much as possible through Twitter.MMT seems to be moving past the stage of being attacked to the stage where at least from of those in opposition are becoming reconciled to the changing conditions that have led to MMT being picked up by the left and gaining prominence in the media. The narrative is changing noticeably.Significantly, Brad...

Just a short introduction for the general public. Modern Monetary Theory (MMT) is gaining traction in American politics, energizing the progressive left and roiling deficit hawks. Stephanie Kelton, who advised Bernie Sanders' 2016 presidential campaign, explains the basics. CNBC https://www.cnbc.com/video/2019/03/01/stephanie-kelton-explains-modern-monetary-theory.html