MMT Basics: Interest Rates — NeilW

Summary:
Neil summarizes the MMT position as put forward by Bill Mitchell.There is a need to distinguish special cases from the general case. While the general case MTT view may be agreed upon, reactions to differences in special cases (US, GB, Australia) may create the appearance of disagreement about the general case where there is no fundamental disagreement since the apparent disagreement is accounted for by national conditions that supervene.This is an interesting post not only in terms of clarifying the MMT view but also in regard to interest rates and inflation. Interest rate policy may produce different consequences in special cases owing to institutional differences, e.g., the impact of interest rate setting through the housing channel is somewhat different in the US, GB, and Australia

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