Tag Archives: MMT criticism

Not to bad an article overall, but Dion Rabouin goes off the rails at the conclusion: The takeaway: There's no telling whether Kelton and Sanders are right, because no government has ever attempted to implement the MMT approach.  The reality is that all governments are accounted for in MMT and all governments fall under a special case of the general case set forth in the MMT conceptual institutionalist model that is grounded in law and accounting rather than mathematical models based on...

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...

On the MMT JG and the buffer stock approach to controlling inflation. Important. For some reason, most critics ignore this approach, which is central to the MMT approach to both macroeconomics and policy formulation and policy space. Interestingly, both Paul Krugman and Greg Mankiw, who come from different ideological perspectives (left and right respectively), but share much of the conventional paradigm (New Keynesianism), have difficulty coming to grips with what MMT economists are...

The only interesting thing is why Gundlach so badly misses the mark. Two possible explanations appear to be. He watched the wrong videos. The concepts of MMT were presently either incorrectly, or in a fashion that would be misunderstood by someone with a conventional mindset. It is part of a deliberate strategy to push MMT outside the acceptable bounds of discourse. (For example, it is a signal that nobody working for Gundlach should mention MMT in internal meetings.) Although that sounds...

Scott Fullwiler comments on Twitter: Scott FullwilerReplying to@BPC_Bipartisan @JJFichtner and@kkcarmodyThank you for providing further evidence that "bipartisan" is currently code for "the same shit we've been doing for decades that got us into this mess in the first place." Followed by: Authors: It's hard to pin MMT down Also authors: We didn't cite any academic MMT literature, only critics of MMT who also didn't cite any academic MMT literature And ... the authors: We actually...

Confronting an MMT critic (Ajit Ranade).Live MintOpinion | Why Modern Money Theory needs to be taken seriouslySashi Sivramkrishna

The bottom line is that MMT’s aims are exemplary but an aggressive fiscal stance carries some risk. The doctrine’s theoretical synthesis adds little to the vintage ideas of Godley, Lerner, and Keynes. MMT revamps them with an expansionary thrust but is no striking intellectual synthesis. A better acronym would be VFT, or Vintage Fiscal Theory. Another "we knew it all along and it's no big deal" critique that cites no MMT economists. Lance Taylor does cite his own work, however, and that of...

Unfortunately, there is widespread confusion over MMT as MMT economists have developed it and the way that others describe it. This article makes an attempt but fails to disentangle the knot of conflation, but at least it is an attempt at balance rather than the usual rant.DW (Deutsche Welle)Modern Monetary Theory: Endless debt with no consequences?

FYI.Real-World Economics Review BlogSome constructive remarks on Wray’s “Alternative paths to MMT” Arturo Hermann

In Part 1 I discussed the third annual MMT conference that was recently held at Stony Brook, and you can find the program as well as videos of the conference here: (https://www.mmtconference.org/). In this Part 2 I discuss a special issue of real-world economics review devoted to MMT (http://www.paecon.net/PAEReview/issue89/whole89.pdf). As usual, my report stretched out to become too long for just 2 blogs so there will be a Part 3, coming later this week. And who knows, maybe I’ll need a...