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Lance Taylor — Not So Modern Monetary Theory

Summary:
Lance Taylor — Not So Modern Monetary TheoryLance Taylor has a new working paper Synthetic MMT: Old Line Keynesianism With An Expansionary Twist with a summary blog post at INET.Paper linked in that post.He talks of the reluctance of Neochartalists to talk of increases in tax rates. Politicians such as Bernie Sanders and Elizabeth Warren running for the President of the United States as a Democrat have proposed plans to raise government spending. There is also a proposed legislation, Green New Deal. These programs may take the US economy to full capacity and hence it is important to take of increases in tax rates. Sanders and Warren have put forward some plans to raise taxes, especially on the highly wealthy. Of course, full capacity or not, tax laws affect the distribution of the national

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Lance Taylor — Not So Modern Monetary Theory

Lance Taylor has a new working paper Synthetic MMT: Old Line Keynesianism With An Expansionary Twist with a summary blog post at INET.

Paper linked in that post.

He talks of the reluctance of Neochartalists to talk of increases in tax rates. Politicians such as Bernie Sanders and Elizabeth Warren running for the President of the United States as a Democrat have proposed plans to raise government spending. There is also a proposed legislation, Green New Deal. These programs may take the US economy to full capacity and hence it is important to take of increases in tax rates. Sanders and Warren have put forward some plans to raise taxes, especially on the highly wealthy. Of course, full capacity or not, tax laws affect the distribution of the national income, so need to be discussed and debated independently.

Thomas Palley has critiqued the neochartalists for ignoring these issues.

Taylor also talks of sustainability of deficits and debts because of external imbalance. This in my opinion is highly important.

Taylor calls neochartalism V.F.T., or Vintage Fiscal Theory.

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