Tag Archives: MMT criticism

A bit of ideological bias at work influencing view of causality, namely, that austerity is expansionary because saving funds investment? I suppose that if Modern Monetary Theory (MMT) were implemented, foreign exchange markets would have their say about it (provided we still had floating exchange rates). Do you think it is a coincidence that the two biggest bull markets correspond with government austerity? I do not. And tell us what happened after the two biggest bull markets? MMT...

Nathan Lewis is totally confused about government finance and central banking. And he has an attitude to begin with. Amazing that this kind of rant gets published. Oh well, Forbes. ForbesThe Problem With "Modern Monetary Theory" Is That It's True Nathan Lewis

Brad DeLong schools Jonathan Portes.Grasping RealityI would not have called MMT "nonsense economics". Brad DeLong | Professor of Economics, UCAL Berkeley

What Bob Adelmann doesn't seem to get is that government spending adds to GDP and if GDP and the debt grow at the same rate, then the debt to GDP ratio remains the same. There is a multiplier, however, and if the multiplier is greater than 1, then the ratio decreases (GDP goes up more than debt), while if the multiplier is less than 1, the ratio increases (debt goes up more than GDP). The focus therefore should be on the multiplier if one evaluates growth as the priority and assumes that...

John Mauldin obsessing again. It was my first encounter with what I thought was economic insanity.More than 10 years ago, I came across the ideas of economist Bill Mitchell of the University of Newcastle in New South Wales. He was teaching what he called Modern Monetary Theory (MMT). I looked into it and quickly dismissed it as silly... Congress has tried to create agencies which would use the Fed to directly create money. These agencies and methods have all been ruled overwhelmingly...

Paul Krugman has a couple of posts criticizing MMT. He tries to be polite, pointing out that at the zero bound their policy recommendations are less bad than those of advocates of austerity. But deep down he must know that this model is sheer madness. Stephanie Kelton responds, and continues the long MMTer tradition of being unable to provide a clear explanation of the ideas.... Bond vigilantes.The Money IllusionMagical Thinking Scott Sumner | Director of the Program on Monetary Policy at...

Now MMT has a bully pulpit, too. The table is still tipped though. But MMT is no longer reduced to rebutting Paul Krugman in his comments section. More progress!Bloomberg OpinionModern Monetary Theory Is Not a Recipe for DoomStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

Richard Murphy reports another hit job on MMT and him as well along with the progressive wing of the Labour Party that supports MMT. The attack is stepping up. And, my friends, in this story you have a history of this entire movement. First they ignore you. Then they ridicule you. And then they attack you and want to burn you. And then they build monuments to you. And that, is what is going to happen to the Amalgamated Clothing Workers of America. — Nicholas Klein, 1914 (This quote or a...

Hit job.Noting surprising here. It's right in line with the rest of the establishment propaganda masquerading as "news" and a "free press" in the US.The PhoenixModern Monetary Theory Isn't a Panacea Laura Wilcox

Despite what proponents of modern monetary theory say, America’s current rate of deficit spending is already undermining faith in the dollar as a reserve currency. That is why so many nations are starting to slowly dump their dollar reserves and buy gold. As the dollar loses its reserve currency status, the U.S. will lose its ability to print and borrow money without experiencing runaway inflation. Decades of budgetary mismanagement will catch up with the nation, allowing other nations to...