Wednesday , October 21 2020
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Tag Archives: MMT

Bill Mitchell – Dear Treasurer, I have a plan for your $60 billion

On Friday, we had the extraordinary admission from our Federal government that they had overestimated the injection required to fund their wage subsidy JobKeeper program by some $A60 billion. When the overall program was announced the Treasury allocated $A133 billion to it. So now they are admitting to a 45 per cent forecasting error, which sort of dwarfs the worst errors that the IMF makes, and they sure make some bad mistakes in their projections. Whatever the reason for the mistake, the...

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Bill Mitchell — MMT critiques need to get more inventive – it’s getting boring

Talking points.  The so-called MMT critics need to read more MMT in order to actually criticize MMT. They are criticizing MMT based on straw man arguments. I, too, am getting bored with plodding through it to see if anyone has come up with anything substantial.  Without doing the necessary prep, criticism appears not only unprofessional. In this case, it also leads to the question of whether the criticism is an ideological attempt to control the narrative by influence based on...

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Bill Mitchell – A Job Guarantee would require $A26.5 billion net to reduce the unemployment rate by 6 percentage points

When Kevin Rudd was faced with the threat posed by the unfolding GFC in late 2008 his government became very pragmatic and immediately ditched the narrative they had been pushing out throughout that year about inflation being a threat and the need for tighter fiscal policy and surpluses. They introduced, in two rounds, a fairly significant fiscal stimulus (around 4.2 per cent of GDP) which effectively saved the Australian economy from entering a recession. A significant part of that...

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Bill Mitchell – JobKeeper wage subsidy – some strange arithmetic is afoot

It is Wednesday so music and some snippets. I have updated the US unemployment claims data with a new map and state table. Shocking. We are working on updated estimates of what the Australian government would need to invest to run a Job Guarantee. We haven’t done that for a while because I didn’t want the press to get obsessed with dollar amounts. But as I am currently talking a lot about the Job Guarantee in the media, I thought some numbers would be useful as a comparative exercise...

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A Refutation of Academic Agent’s “Debunking Modern Monetary Theory (MMT)”

Academic Agent – a YouTube libertarian and unusually ignorant advocate of Austrian economics – tries to refute Modern Monetary Theory (MMT) in this video:[embedded content]Let us run through this video and refute Academic Agent’s arguments point by point:(1) Academic Agent fails to Refute the Three Core Principles of MMT There are three fundamental principles in Modern Monetary Theory (MMT), as follows:(1) Most sovereign governments today are the monopoly issuers of their own fiat currencies...

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