Tag Archives: MMT criticism

Which is the cult and who are the cultists here?New StatesmanThe surprise cult of Modern Monetary Theory Hettie O'Brien

It is Wednesday – so just a few observations and then we get down a bit dirty (funky that is). Today, I consider the GND a bit, critics of MMT, Japan, and more. Never a dull moment really. I didn’t really intend writing much but when you piece together a few thoughts, the words flow and so it is. The main issue is the recurring one – the lets have a little, some or no MMT narrative. This misconception regularly crops up in social media (blog posts, Twitter etc) and tells me that people are...

More "criticism" of MMT for the record. Another rant by the clueless for the clueless. Handwringing.Cranach at Patheos“Modern Monetary Theory”: Deficits Don't Matter Gene Veith

File under "behind the times."Another nutty rant "argument" against MMT for the record.Banyan HillWhy Modern Money Theory is Bad for the Economy Michael Carr, CMT, CFTe | Editor, Peak Velocity TraderHere's a few more that don't understand the operational reality.Hellenic Shipping NewsWorry About Debt? Not So Fast, Some Economists Say New American“Modern Monetary Theory” Will Pay for AOC's Green New Deal Bob Adelmann

I have read the articles that The Economist published on Modern Monetary Theory (MMT) in the current edition of the liberal-leaning magazine (hereand there). I am not happy with the reporting, which includes false statements in general and also misrepresentations of what MMT is.... The Economist just put the UK debate on progressive economic policy on a slippery slope, claiming that a particular school of economics science constitutes “doctrine” and then misrepresenting that school’s...

Steven Rattner’s opinion piece in the New York Times and [Jason] Furman’s interview on National Public Radio are perfect examples of the ideas that MMT wants to debunk:  Deficits are not normal; deficits crowd out private investment; the public debt is a burden on our grandchildren; our ability to respond to societal problems is limited by the fact that the US government does not have enough money to confront them. Below is an alternative interview to the Furman’s interview that reviews...

In this article, I draw attention to the similarities between the current economic situation and that of 1929, and the threat to today's unbacked currencies.There is the coincidence of trade protectionism with the top of the credit cycle, and there are the inflationary events that preceded it. The principal difference today is in modern macroeconomic delusions, which hold that regulating inflation of money and credit is the solution to all ills. I conclude that economic salvation can only...

Dean Baker looks at offsets. He doesn't see "taxing the rich" as a good offset. I don't think MMT economists do either, and as far as I know, they have not pushed this proposal. "Taxing the rich" through progressive taxation has another reason. That is, limiting the political power of wealth and reducing inequality. There are good reasons for this – social, political and economic.Some MMT economists have recommend preemption of rent extraction first, with the residual to be addressed...

Michael Liebowitz makes up his own theory of inflation to criticize MMT and the inflation constraint. See It Market Modern Monetary Theory and its Fictional Discipline Michael Lebowitz

This article goes into the controversial Green New Deal package put out by U.S. freshman Congress member Alexandria Ocasio-Cortez (known on Twitter as AOC) and veteran lawmaker Senator Edward Markey. Majority Leader Mitch McConnell moved to bring the legislation to a vote in the U.S. Senate. However, the probability of such legislation passing would require a Democrat figure in the White House, but it outlines what key party members feel about capitalism, Modern Monetary Theory (MMT),...