by MMT criticism has shirted away from affordability (budget constraint) and fiscal responsibility (default constraint) to an inflation constraint and a curency devaluation constraint.While this is progress, it is probably an impass such as is encountered when theories and their models are founded on incompatible assumptions.On one hand, this is likely to lead to a revisiting of economic theory in light of criticism of neoclassical economics from Keynes, Paleo Keynesians, Post Keynesians and Institutionalists.On the other hand, neoclassical economists are never going to accept that inflation risk and foreign exchange risk can never be formalized to the standards they impose owing to the level of uncertainty that Keynes explicated by then. John Hicks and Paul Samuelson's interpretation of
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While this is progress, it is probably an impass such as is encountered when theories and their models are founded on incompatible assumptions.
On one hand, this is likely to lead to a revisiting of economic theory in light of criticism of neoclassical economics from Keynes, Paleo Keynesians, Post Keynesians and Institutionalists.
On the other hand, neoclassical economists are never going to accept that inflation risk and foreign exchange risk can never be formalized to the standards they impose owing to the level of uncertainty that Keynes explicated by then. John Hicks and Paul Samuelson's interpretation of Keynes were meant to reconcile Keynesianism with neoclassicism. We are still living with the results of that. Fail.
A lot of these folks are going to die holding on to those views, waiting for formal models that pass the criteria they arbitarily impose. And the harder and longer one digs in, the more difficult it becomes to admit mistake. (Some reputational risk would help.) Hopefully, the world will now begin to pass them by.
Bond Economics
Changing Budgetary Procedures: Outline Of The MMT Approach
Brian Romanchuk