Tag Archives: MMT

The week before last, Thomas Fazi and I had a response to a recent British attack on Modern Monetary Theory (MMT) published in The Tribune magazine (June 5, 2019) – For MMT. In effect, there were two quite separate topics that needed to be discussed: (a) the misrepresentation of MMT; and (b) the issues pertaining to British Labour Party policy proposals. The article we were responding to – Against MMT – written by a former Labour Party advisor, was not really about MMT at all, as you will...

Simon Wren-Lewis is obviously upset because some MMTers have called his economic policy proposals (providing the theoretical foundation for Labour’s Fiscal Credibility Rule) “neoliberal”. Neoliberal or not, what he does have to say about MMT and his own mainstream economics makes it clear what the debate really comes down to: Monetary policy, except at the lower bound (to which Labour affixes a rule), versus fiscal policy in accordance with functional finance.What this boils down to is...

Yet again, the question of "printing money" and Modern Monetary Theory (MMT) has come up on Twitter. In my view, these debates are confusing because critics of MMT tend to mash multiple concepts into a pile of textual sludge. Unfortunately, MMTers are forced to respond to those attacks, and the end result is that everyone is confused.One of the advantages of mathematical training is that you are forced to take definitions seriously, and step cautiously from premise to premise. This enforces...

Last week, Thomas Fazi and I had a response to a recent British attack on Modern Monetary Theory (MMT) published in The Tribune magazine (June 5, 2019) – For MMT. The article were were responding to – Against MMT – written by a former Labour Party advisor. In – Part 1 – we considered how the MMT critique was not really about MMT at all. We provided a more accurate summary of what MMT is and what it is not. In this second Part we consider the way the former advisor’s article misrepresented...

Simon Wren-Lewis's response to Bill Mitchell proves Bill's point. I can't wait to see Bill's smackdown, if he bothers to respond. I don't have the time to waste. SWL is out of his league here.SWL doesn't get that the conventional approach is neoliberal. Reiterating it and saying it is not neoliberal doesn't cut it. I have little hope that SWL or the rest of the left neoliberals will ever get it. They will have to be replaced. New StatesmanLabour's fiscal credibility rule isn't neoliberal...

Good pro-MMT article from Peter May contra the neoliberal left.Take-away: So I agree that distribution of power is important but I do think that knowing exactly where money comes can be mighty helpful in torpedoing that actual power, by better exposing its bogus ‘justification’. That is why I imagine many consider MMT to be progressive; not because its understandings are inherently so in themselves. But simply because, in order to avoid a fair and logical left of centre conclusion, you...

Last week, Thomas Fazi and I had a response to a recent British attack on Modern Monetary Theory (MMT) published in The Tribune magazine (June 5, 2019) – For MMT. The article were were responding to – Against MMT – written by a former British Labour Party advisor, was not really about MMT at all, as you will see. Instead, it appeared to be an attempt to defend the Labour Party’s Fiscal Credibility Rule, that has been criticised for being a neoliberal concoction. Whenever, progressives use...

A recent poll from the Democracy Collaborative and YouGov reveals that most Americans are ready to spend more for social needs, even if it raises the deficit.  The debate around modern monetary theory (“MMT”) is picking up steam – with its partisans pushing the model further into the public sphere than one might expect, and the old guard of establishment economics, together with some more interesting critical voices, pushing back. The questions at stake can make the average person’s head...

By J.D. ALT According to the “invisible hand” theory—long celebrated (in America) as the most effective mode of human economics—private commerce should now be busy directing our efforts and resources toward those things we truly need to prosper as a collective society. Instead, the “invisible hand” seems to be willfully guiding us in the opposite direction. How can that be? Has something fundamental shifted, causing the mechanism of the Great American Enterprise to steer not just...

Richard Murphy addresses specific issues raised questioning MMT. "Paradigms" are overarching conceptual models of systems that create a framework in terms of which competing theories can be generated in response to issues, especially emergent ones at the frontier of knowledge. The paradigm that has been in force with respect to policy issues since the rise of the Chicago School and the replacement of John Maynard Keynes with Milton Friedman has been neoliberalism, the basis of which is...