Tuesday , November 5 2024
Home / Mike Norman Economics / Tom Holland — Even in China, there’s no magic money tree. Modern monetary theory is an illusion

Tom Holland — Even in China, there’s no magic money tree. Modern monetary theory is an illusion

Summary:
Tom Holland is a geologist by training and journalist by profession. Although he has written on business for 25 years, he displays little knowledge of finance, economics or MMT in this article. Why do people that are not qualified to speak on an important subject get a platform to criticize for reasons that are patently wrong. In the first place, the author doesn't realize that China is not sovereign in its currency since it pegs the renminbi to the dollar. (The Chinese currency is the renminbi (RMB) and the unit of account is the yuan (CNY). The US dollar (USD) is used to denote both the currency and the unit of account.) So from the start the assumption that the currencies are the same is wrong on MMT terms. It heads downhill from there. It’s not much of a choice is it? Venezuela

Topics:
Mike Norman considers the following as important: , ,

This could be interesting, too:

Mike Norman writes My latest podcast is out. I go after the dopey MMT critics.

Mike Norman writes Inside the Bernie economy — Dion Rabouin

Mike Norman writes MMT Critics And Banks — Brian Romanchuk

Mike Norman writes Bill Mitchell — A response to Greg Mankiw – Part 3

Tom Holland is a geologist by training and journalist by profession. Although he has written on business for 25 years, he displays little knowledge of finance, economics or MMT in this article. Why do people that are not qualified to speak on an important subject get a platform to criticize for reasons that are patently wrong.

In the first place, the author doesn't realize that China is not sovereign in its currency since it pegs the renminbi to the dollar. (The Chinese currency is the renminbi (RMB) and the unit of account is the yuan (CNY). The US dollar (USD) is used to denote both the currency and the unit of account.) So from the start the assumption that the currencies are the same is wrong on MMT terms.

It heads downhill from there.
It’s not much of a choice is it? Venezuela or the Soviet Union? But that’s what the proponents of MMT are offering....
South China Morning Post
Even in China, there's no magic money tree. Modern monetary theory is an illusion
Tom Holland

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.

Leave a Reply

Your email address will not be published. Required fields are marked *