Tag Archives: MMT

A shorter blog post today (Wednesday). On Monday (July 29, 2019), the British Social Metrics Commission published their – 2019 Report – which reveals (staggeringly) “that 4.5 million people are more than 50% below the poverty line, and 7 million people are living in persistent poverty” in Britain. So around 22 per cent of people in the UK are living in poverty. In this day and age, poverty is like polio – it is completely avoidable if governments adopt the right policy mix. Persistent...

In Monte Python’s Life of Brian we were introduced to the “People’s Front of Judea”, which was “one of many fractious and bickering independence movements, who spend more time fighting each other than the Romans”. The segments featuring the Front were very amusing. It was humour but redolent of the sort of historical struggles that have divided the Left over the centuries. In Australia, the history of the Communist Party, for example, is one of many factions, splintering into new parties...

Randy Wray video and Lars's comment about MMT's implications for the eurozone.Lars P. Syll’s BlogEverything you want to now about MMTLars P. Syll | Professor, Malmo University

This is the second and final part of my recent discussion on the what a Green New Deal requires. All manner of proposals seem to have become part of the GND. The problem is that many of these proposals sell the idea short and will fail to achieve what is really required – a massive transformation of society and the role the government plays within it. The imprecision is exacerbated by progressives who are afraid to go too far outside the neoliberal mould for fear of being shut out of the...

This policy inclination – both local and one suggested in IMF programs towards over-relying on policy rate on curtailing aggregate demand, is indeed a disproportionate response to correctly and effectively addressing inflation and low growth challenge. Pakistan, therefore, needs a balanced monetary and fiscal policy response to tackle the issues of stagflation. The policy should focus on both the aggregate – demand and supply sides. This will also help bring a much-needed boost in the...

All over the globe now there are cries for a Green New Deal. What constitutes the GND is another matter. Like the concept of the Job Guarantee, there are now countless versions springing out of various groups, some that only seem to offer a short-term, short-week job or other arrangements that fall short of the way Modern Monetary Theory (MMT) constructs the concept. There is only one Job Guarantee in the modern parlance and that is the MMT concept. Other job creation programs are fine but...

The epithets being used as put-downs for Modern Monetary Theory (MMT) are growing. But some of the good old terms – that one might actually apply to mainstream macroeconomics – are also in currency. An article in Project Syndicate (May 27, 2019) – Japan Then, China Now – declared MMT to be “the latest strain of voodoo economics” that is “alluring for the Trump administration”. The article by a Yale University lecturing staff member (and former investment banker) really just reminds us why...

Hindsight also makes it possible to see the signals that were missed by the major political powers of Europe, but which precipitated the First World War. It also seems possible to see the changes the climate is rendering right now. And, if we pay enough attention, perhaps we can identify in real time the emergence of trends that will remake the world we live in the next year, the next decade, and 30 years from now.We might notice: Modern Monetary Theory, the rise of Alexandria...

But the impact of the tax hike on the economy remains uncertain, and numerous experts have already said it may lead to further stagnation. The country is in the middle of an economic downturn, they say, and the tax increase will only worsen low inflation.Some U.S. scholars agree. "Taxes are for subtraction and to remove spending power from someone," said Stephanie Kelton, a professor of economics and public policy at Stony Brook University. Kelton, a leading MMT advocate, criticized the...

Lambert Strether posed these links at Naked Capitalism. The VoxEU article was posted here at MNE when it came out. It is cited here if you missed it. The operative post is the Twitter thread that Scott Fullwiler tweeted in response to it.Modern money theory and its implementation and challenges: The case of Japan VoxEU. Thread in response by Fullwiler.Naked CapitalismSee also at Naked Capitalism today.Michael Hudson exceeded himself on this one. Here is the conclusion. The American promise...