by Summary:
Scott Sumner is not satisfied with the answers he received.If I were to try to develop a radical new macro theory, I’d try to come up with a way of explaining my new model using the framework of existing models. Actually, I often do that here, translating market monetarism into New Keynesian language. I’m not seeing that with MMT. And it’s not just me. I see other bloggers like Noah Smith, Paul Krugman, Brad DeLong, Nick Rowe, etc., who seem to have an equally hard time trying to figure out what MMTers are claiming. MMTers should understand why we are confused, and have plausible answers. One sign that you are truly on top of an issue is if you can see why others hold a different view, and explain things in their language.Uh, maybe because they are criticizing the framework.BTW, as a
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Scott Sumner is not satisfied with the answers he received.If I were to try to develop a radical new macro theory, I’d try to come up with a way of explaining my new model using the framework of existing models. Actually, I often do that here, translating market monetarism into New Keynesian language. I’m not seeing that with MMT. And it’s not just me. I see other bloggers like Noah Smith, Paul Krugman, Brad DeLong, Nick Rowe, etc., who seem to have an equally hard time trying to figure out what MMTers are claiming. MMTers should understand why we are confused, and have plausible answers. One sign that you are truly on top of an issue is if you can see why others hold a different view, and explain things in their language.Uh, maybe because they are criticizing the framework.BTW, as a
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Mike Norman considers the following as important:
This could be interesting, too:
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Scott Sumner is not satisfied with the answers he received.
If I were to try to develop a radical new macro theory, I’d try to come up with a way of explaining my new model using the framework of existing models. Actually, I often do that here, translating market monetarism into New Keynesian language. I’m not seeing that with MMT. And it’s not just me. I see other bloggers like Noah Smith, Paul Krugman, Brad DeLong, Nick Rowe, etc., who seem to have an equally hard time trying to figure out what MMTers are claiming. MMTers should understand why we are confused, and have plausible answers. One sign that you are truly on top of an issue is if you can see why others hold a different view, and explain things in their language.Uh, maybe because they are criticizing the framework.
BTW, as a philosopher I can report that this is the situation with Wittgenstein's criticism of philosophy on logical grounds. The framework is just wrong because it ignores what's actually going on with the logic and not what is supposed. As result many philosophers don't get Wittgenstein's criticism of their methodologies.
What is Wittgenstein's major point? Look and see. Pretty much the same point that MMT economists make from the institutional/accounting perspective.
The MMT economists criticism is the same as Wittgenstein's in philosophy: You are setting about it in the wrong way. The assumptions are not supported by the actual system structure and dynamics.
The Money Illusion
MMT bleg, one more try
Scott Sumner | Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University