by Summary:
MMT itself is just a description of how the monetary system works in the UK, US, Canada, Australia, the EMU – everywhere there is a monetary economy. I dislike quibbling, but MMT is prefaced by an operational description of how monetary systems work, paying particular attention to the existing monetary system. This analysis reveals the policy space associated with policy choice regarding the monetary system and monetary operations. MMT is based on this analysis of policy space. Secondly, MMT is also an macroeconomic theory based on a specific method for approaching macroeconomics that differs from other method owing to the operational analysis and other factors, such as attention to sectoral balances and stock-flow consistency. MMT is a theory in that there is attribution of
Topics:
Mike Norman considers the following as important: economic policy, fiscal policy, MMT, policy space
This could be interesting, too:
MMT itself is just a description of how the monetary system works in the UK, US, Canada, Australia, the EMU – everywhere there is a monetary economy. I dislike quibbling, but MMT is prefaced by an operational description of how monetary systems work, paying particular attention to the existing monetary system. This analysis reveals the policy space associated with policy choice regarding the monetary system and monetary operations. MMT is based on this analysis of policy space. Secondly, MMT is also an macroeconomic theory based on a specific method for approaching macroeconomics that differs from other method owing to the operational analysis and other factors, such as attention to sectoral balances and stock-flow consistency. MMT is a theory in that there is attribution of
Topics:
Mike Norman considers the following as important: economic policy, fiscal policy, MMT, policy space
This could be interesting, too:
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MMT itself is just a description of how the monetary system works in the UK, US, Canada, Australia, the EMU – everywhere there is a monetary economy.I dislike quibbling, but MMT is prefaced by an operational description of how monetary systems work, paying particular attention to the existing monetary system. This analysis reveals the policy space associated with policy choice regarding the monetary system and monetary operations.
MMT is based on this analysis of policy space.
Secondly, MMT is also an macroeconomic theory based on a specific method for approaching macroeconomics that differs from other method owing to the operational analysis and other factors, such as attention to sectoral balances and stock-flow consistency. MMT is a theory in that there is attribution of causality that goes beyond simply stating accounting identities.
Thirdly, MMT makes policy recommendations within the Keynesian framework of the assumption that full employment is not the equilibrium state of a modern monetary production economy, e.g., owing to the non-neutrality of money not only in the short run but also the long run.
According to MMT economists, MMT is only viable solution on the table for harmoniously reconciling of the trilemma of growth, employment and price stability that most economists view as non-reconcilable, that is, at most two factors can be reconciled while the other factor must function as a tool, e.g., addressing price stability through monetary policy based on NAIRU and a buffer stock of unemployed. The harmonious resolution of this trilemma is considered to be the holy grail of macroeconomics, in particular with respect to policy.
MMT is apolitical in the sense that all economists and policy makers prefer the harmonious reconciliation of growth, employment, and price stability. Politics is about how to accomplish this in terms of ideological assumptions involving favoring some factors over others.
MMT shows that this tradeoff is not necessary given the deeper understanding that MMT analysis provides and using the potential policy space of currency sovereign under the existing monetary system. And this does involve political choices since it involves fiscal policy.
Ellis Winningham — MMT and Modern Macroeconomics
MMT and Politics: A Brief Explanation
Ellis Winningham
MMT and Politics: A Brief Explanation
Ellis Winningham