by Summary:
This passes for serious criticism now? In addition, Tim Worstall doesn't seem to realize that MMT is not a policy proposal but rather based on how the existing monetary system operates currently. Understanding this and using this knowledge opens up policy space by correctly describing existing fiscal space. Nothing needs to change with respect to the actual potential of the existing monetary system. This misunderstood by most economists, politicians and the public, with the result that voters and their representatives remain unaware of the potential of a sovereign currency issuer and accept "expert" advice that is not based on reality, thereby limiting the range of options considered to be available. The argument seems to be, Let's not use what we have because we might abuse it.
Topics:
Mike Norman considers the following as important: MMT, MMT criticism, MMT crritics
This could be interesting, too:
This passes for serious criticism now? In addition, Tim Worstall doesn't seem to realize that MMT is not a policy proposal but rather based on how the existing monetary system operates currently. Understanding this and using this knowledge opens up policy space by correctly describing existing fiscal space. Nothing needs to change with respect to the actual potential of the existing monetary system. This misunderstood by most economists, politicians and the public, with the result that voters and their representatives remain unaware of the potential of a sovereign currency issuer and accept "expert" advice that is not based on reality, thereby limiting the range of options considered to be available. The argument seems to be, Let's not use what we have because we might abuse it.
Topics:
Mike Norman considers the following as important: MMT, MMT criticism, MMT crritics
This could be interesting, too:
Steve Roth writes MMT and the Wealth of Nations, Revisited
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
Michael Hudson writes International Trade and MMT with Keen, Hudson
Matias Vernengo writes Modern Money Theory in the Tropics: A Reply to Agustin Mario
This passes for serious criticism now?
In addition, Tim Worstall doesn't seem to realize that MMT is not a policy proposal but rather based on how the existing monetary system operates currently. Understanding this and using this knowledge opens up policy space by correctly describing existing fiscal space. Nothing needs to change with respect to the actual potential of the existing monetary system. This misunderstood by most economists, politicians and the public, with the result that voters and their representatives remain unaware of the potential of a sovereign currency issuer and accept "expert" advice that is not based on reality, thereby limiting the range of options considered to be available.
The argument seems to be, Let's not use what we have because we might abuse it. "Venezuela!" "Zimbabwe!" Notice how Venezuela has replaced Weimar, as Weimar recedes further from memory and becomes less useful in persuasion.
Continental Telegraph
The End Game Of Modern Monetary Theory
Tim Worstall | Senior Fellow of the Adam Smith Institute and founder of the Continental Telegraph