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Ramanan — Gerald Epstein’s Critique Of Neochartalism

Summary:
Gerald Epstein and V. Ramanan bring up potential objections to the MMT position based on the international financial situation, an issue that Wynne Godley had pointed out previously.Ramanan has brought up questions around balance of payments issues in the past as well. Now this may sound as a pessimistic view for any individual nation or the world as a whole. The real problem is free trade – the most sacred tenet of the economics profession. Another paradox of (bourgeois) liberalism, where economic liberalism implies "free markets, free trade, and free capital flows"as foundational to contemporary capitalism as the global socio-economic system? The broader question is whether MMT successfully addresses the shortcomings of capitalism to the point of making bourgeois liberalism

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Gerald Epstein and V. Ramanan bring up potential objections to the MMT position based on the international financial situation, an issue that Wynne Godley had pointed out previously.

Ramanan has brought up questions around balance of payments issues in the past as well.

Now this may sound as a pessimistic view for any individual nation or the world as a whole. The real problem is free trade – the most sacred tenet of the economics profession.
Another paradox of (bourgeois) liberalism, where economic liberalism implies "free markets, free trade, and free capital flows"as foundational to contemporary capitalism as the global socio-economic system?

The broader question is whether MMT successfully addresses the shortcomings of capitalism to the point of making bourgeois liberalism workable satisfactorily without resulting in social, political or economic dysfunction owing to its structural and functional dynamics as a system.

There are always tradeoffs with choices. Crafting a perfect systems is likely beyond human capacity, especially owing to emergence in complex adaptive systems. But we should be vigilant about the potential for things going wrong. In addition, economics is only an aspect of a highly complex system that involves much more than economics and finance. Economic issues are not the only important ones, or even the most important ones.

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Gerald Epstein’s Critique Of Neochartalism

V. Ramanan

See also from Ramanan

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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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