Tag Archives: MMT

Simple explanation.Progressive PulseThe household fallacyCharles Adams | Professor of Physics at the University of Durham, where he teaches Optics and Econophysics

“This set of circumstances is unsustainable and certainly can no longer be pushed as it has been pushed since 2008. That is why I believe that the world is approaching a big paradigm shift,” Dalio wrote. Governments are also battling large deficits, while pension and health care liabilities are increasing. The latter circumstance, he says, will result in an escalation of the wealth gap battle as the government decides whether to cut benefits, raise taxes or print money to address it. This...

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

This is the first part of a three-part series this week, where I provide some guidance on some key questions about Modern Monetary Theory (MMT) that various parties in Japan have raised with me. The public discussion about MMT in Japan is relatively advanced (compared to elsewhere). Questions are asked about it and answered in the Japanese Diet (Parliament) and senior economics officials in the central bank and government make comments about it. And political activists across the political...

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...

Killing zombie nonsense that refuses to die. ForbesThe Green New Deal: How We Will Pay For It Isn't 'A Thing' - And Inflation Isn't Either Robert Hockett |  Edward Cornell Professor of Law and a Professor of Public Policy at Cornell University, Senior Counsel at Westwood Capita and a Fellow of The Century Foundation.

The US Bureau of Economic Analysis (BEA) released the – Gross Domestic Product, Third Quarter 2019 (Advance Estimate) – data yesterday (October 30, 2019). It shows that the US economy “increased at an annual rate of 1.9 percent in the third quarter of 2019” which was slightly slow than the 2 per cent recorded in the June quarter. As this is only the “Advance estimate” (based on incomplete data) there is every likelihood that the figure will be revised when the “second estimate” is published...

Professor Andrea Terzi is an MMT economist. Here are some observations on the EZ. The second link contains a link to a recent paper of his, "A critical analysis of public debt under a non-convertible currency standard: Implications for the euro area"Money And The Real EconomyEuro area financial balances send a warning signalThe euro area has a unique opportunityAndrea Terzi, Professor of Economics, Franklin College, Switzerland

Influential pundits have argued that under the current situation there is no need for the government to worry about fiscal sustainability. They have found support in the proponents of so-called modern monetary theory, who have cited Japan as real-world proof of their heterodox doctrine. Even some mainstream economists, including Olivier Blanchard, have advocated for fiscal activism in Japan and argued against the consumption tax hike. An important basis of their argument is the absence 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?