by Summary:
Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones. Irrespective of the personal political preferences of its proponents, the theoretical framework in itself is neutral on the appropriate balance between public sector and private sector activity, or the relative merits of capitalism and socialism. In contrast to neoclassical theory, which starts from a general presumption in favor of private market-based activity except where the existence of market failure in excess of government failure can be explicitly established, MMT as a theory characterizes the appropriate mix of public and private activity as a social (or political) choice.... This is
Topics:
Mike Norman considers the following as important: Economics, economics profession, MMT, open inquiry, scientific method
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Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones. Irrespective of the personal political preferences of its proponents, the theoretical framework in itself is neutral on the appropriate balance between public sector and private sector activity, or the relative merits of capitalism and socialism. In contrast to neoclassical theory, which starts from a general presumption in favor of private market-based activity except where the existence of market failure in excess of government failure can be explicitly established, MMT as a theory characterizes the appropriate mix of public and private activity as a social (or political) choice.... This is
Topics:
Mike Norman considers the following as important: Economics, economics profession, MMT, open inquiry, scientific method
This could be interesting, too:
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Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones. Irrespective of the personal political preferences of its proponents, the theoretical framework in itself is neutral on the appropriate balance between public sector and private sector activity, or the relative merits of capitalism and socialism. In contrast to neoclassical theory, which starts from a general presumption in favor of private market-based activity except where the existence of market failure in excess of government failure can be explicitly established, MMT as a theory characterizes the appropriate mix of public and private activity as a social (or political) choice....
This is important because the substantive and procedural assumptions of an approach to inquiry, coupled with presumptions that are often unstated assumptions, determine the framework and therefore bias the outcome of analysis toward the assumptions, both stated and unstated. If assumptions and presumptions contain a normative element in addition to a positive (descriptive) one, then the approach is values-based, which in scientific terms implies subjective rather than objective.
It is difficult to impossible to formulate a theory involving social, political or economic data that is not normative to some degree owing to cultural and subcultural bias in that cognitive biases are endemic. For example, cognitive science reveals that reason cannot be completely disentangled from feeling in brain. Scientists recognize that attempt to minimize the subjective factors in the interest of approaching objectivity as closely as possible.
MMT is Politically Open and Applicable to Both Capitalism and Socialism
Peter Cooper