Tag Archives: MMT criticism

Here he goes again. "Zimbabwe."Tim Worstall knows better. MMT's bottom line is availability of real resources to meet effective demand. Zimbabwe's problem is exceeding its real resource constraint fiscally. The predicable result based on MMT analysis is inflation.  This is trivial. Either Tim Worstall is ignorant of MMT, or he is being disingenuous. Continental TelegraphZimbabwe’s Third Time Lucky – The Return Of The Zim$ Tim Worstall

After two long and possibly turgid posts analysing Modern Monetary Theory, in this third post, I’m going to look at the practicalities – in other words, what are the policy proposals that MMTers put forward for the government to do in order to get more jobs at better wages and without provoking inflation? Michael Roberts does a decent job of stating the MMT position with quotes from MMT economists. He concludes: In this way, MMT acts as a backstop to capitalism – the state is the employer...

Another deficit hawk shocked, shocked, shocked by MMT. Summary Wake up America! It is only massive and unsustainable deficit spending that continues driving our economy forward. The budget deficit is set to widen significantly in the next few years and in 2020, is expected to top $1 trillion even with healthy economic growth, according to new projections from the nonpartisan Congressional Budget Office. The bottom line is that we are in the midst of a "false economy" and it is only by the...

Even if you don't read Bill regularly, you probably want to read this one in which Bill answers critics on specific points of misunderstanding.Bill Mitchell – billy blogMMT is sending us crazy – the end is near … hold on, not quite nearBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

MMT is, in its theory and expression, nothing more than an over-glorified central bank inspired overtake of the entire global economy as to reset it into a Marxist/Socialist/Communist inspired construct of central planning delegation, where winners and losers of business and more will be picked via the delegation of money printed ex nihlo to where some central authority will see fit. Or said differently: an utter and complete con job to gain control of all mechanics of enterprise, where...

Tom Holland is a geologist by training and journalist by profession. Although he has written on business for 25 years, he displays little knowledge of finance, economics or MMT in this article. Why do people that are not qualified to speak on an important subject get a platform to criticize for reasons that are patently wrong. In the first place, the author doesn't realize that China is not sovereign in its currency since it pegs the renminbi to the dollar. (The Chinese currency is the...

Confused.  Michael Roberts needs to read more of the MMT primary literature if he wants to critique MMT in any detail. Nevertheless, MMT starts with the conviction that it is the state (not capitalist commodity relations) that establishes the value of money. Not quite.MMT starts with the observation of Warren Mosler that under the current monetary system, a contemporary sovereign currency is a public monopoly, with the currency issuing government acting as the people's representative —...

Cullen has said all this previously in blog posts, and he summarizes his take in this one. His views have been addressed previously at MNE.Pragmatic CapitalismMMT – The Good, the Bad and the UglyCullen Roche

Richard Murphy has always said that MMT supporters do not properly understand tax and Jonathan Portes seems to me, on the evidence of this article, to fall into the same category. What Jonathan Portes misses is that the ‘financial constraints’ are self-imposed. It’s bad enough – in reality – being short of teachers, nurses and doctors. But having bogus self imposed financial constraints is just – well – self imposed.Finance is man made. Jonathan Portes, as a former Treasury civil servant,...