Neochartalists (“MMTers”) On Turkey — V. Ramanan

Summary:
This is an old debate begun by the opposition between Warren Mosler and Wynne Godley. The former dismissed the crucial importance of the international position/balance of payment that Wynne Godley held.Turkey is addressing its trade balance by increasing military exports while sticking with low rates on the assumption that raising the interest rate is a price increase that is passed through the economy. This can still be correct even if the international position/BoP is also a significant factor.  So the question comes down to how significant it is relative to monetary and fiscal policy.The Case for Concerted ActionNeochartalists (“MMTers”) On TurkeyV. Ramanan

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