by Summary:
As seen in some comments on my recent articles, critics of Modern Monetary Theory (MMT) often complain about MMT's treatment of banks. I am largely mystified by these criticisms, as they obviously miss the point. Very simply, the existence of banking system, and the fact that bank deposits to be considered to be part of monetary aggregates, is well understood within the MMT literature. The only real debate is about the implications of private banking. To what extent the banking system matters, it is in reference to the business cycle. You would need to read MMT journal articles to judge how well those authors describe the business cycle. One generally notes a lack of reference to said journal articles in criticism. As such, until there are references to said literature, the criticisms
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Mike Norman considers the following as important: MMT, MMT criticism, MMT critics
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As seen in some comments on my recent articles, critics of Modern Monetary Theory (MMT) often complain about MMT's treatment of banks. I am largely mystified by these criticisms, as they obviously miss the point. Very simply, the existence of banking system, and the fact that bank deposits to be considered to be part of monetary aggregates, is well understood within the MMT literature. The only real debate is about the implications of private banking. To what extent the banking system matters, it is in reference to the business cycle. You would need to read MMT journal articles to judge how well those authors describe the business cycle. One generally notes a lack of reference to said journal articles in criticism. As such, until there are references to said literature, the criticisms
Topics:
Mike Norman considers the following as important: MMT, MMT criticism, MMT critics
This could be interesting, too:
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As seen in some comments on my recent articles, critics of Modern Monetary Theory (MMT) often complain about MMT's treatment of banks. I am largely mystified by these criticisms, as they obviously miss the point. Very simply, the existence of banking system, and the fact that bank deposits to be considered to be part of monetary aggregates, is well understood within the MMT literature. The only real debate is about the implications of private banking. To what extent the banking system matters, it is in reference to the business cycle. You would need to read MMT journal articles to judge how well those authors describe the business cycle. One generally notes a lack of reference to said journal articles in criticism. As such, until there are references to said literature, the criticisms should not be taken too seriously....
Bond Economics
MMT Critics And BanksBrian Romanchuk