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Clint Ballinger — MMT & Positive Money Are Converging. That’s a Good Thing

Summary:
Perhaps the two greatest current macroeconomic problems are   a failure to optimally use resources (including people) the design and/or manipulation of the financial system to divert real resources from producers to a financial class The logical approaches to these problems are functional finance in the first case and changes in and/or enforcement of regulation of the financial system in the second case. Two groups that have gained visibility (academic, policy, and/or popular) on these issues are Modern Monetary Theory and Positive Money. MMT scholars largely focused on the first problem, how functional finance can increase the public’s well being. Positive Money’s main worry has been the second and suggestions for changes that might make resource diversion more difficult. However,

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Perhaps the two greatest current macroeconomic problems are  
  1. a failure to optimally use resources (including people)
  2. the design and/or manipulation of the financial system to divert real resources from producers to a financial class
The logical approaches to these problems are functional finance in the first case and changes in and/or enforcement of regulation of the financial system in the second case.
Two groups that have gained visibility (academic, policy, and/or popular) on these issues are Modern Monetary Theory and Positive Money.
MMT scholars largely focused on the first problem, how functional finance can increase the public’s well being. Positive Money’s main worry has been the second and suggestions for changes that might make resource diversion more difficult.
However, the simple point I want to make is this: in recent years the two groups have moved towards each other’s positions and interests to a significant extent, probably much more than either group or the heterodox community recognizes....
Clint Ballinger
MMT & Positive Money Are Converging. That’s a Good Thing
Clint Ballinger
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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