Academic Agent – a YouTube libertarian and unusually ignorant advocate of Austrian economics – tries to refute Modern Monetary Theory (MMT) in this video:[embedded content]Let us run through this video and refute Academic Agent’s arguments point by point:(1) Academic Agent fails to Refute the Three Core Principles of MMT There are three fundamental principles in Modern Monetary Theory (MMT), as follows:(1) Most sovereign governments today are the monopoly issuers of their own fiat currencies...
Read More »Progressives should never work within the mainstream macroeconomics straitjacket — Bill Mitchell
There was an interesting article posted on Alternet (April 12, 2020) – Leftist policy didn’t lose. Marxist electoral theory did – in response to the dismal showing by Bernie Sanders in the current Democratic Primaries. I think it summarises the confusion that is now abundant on the progressive side of the political struggle. The arguments presented highlight the dilemma facing the progressive side of politics. Should Leftists compromise with centrists to get more traction? Compromise with...
Read More »The Myth of “Helicopter Money” Yeva Nersisyan and L. Randall Wray
More free publicity for MMT.Project SyndicateThe Myth of “Helicopter Money”Yeva Nersisyan and L. Randall Wray
Read More »Bill Mitchell — The provenance of the Job Guarantee concept in MMT
As the public scrutiny of the body of work we now refer to as Modern Monetary Theory (MMT) widens there is a lot of misinformation abroad that distorts or otherwise undermines what has been done to date. Most, but not all the misinformation or emphasis comes from those who attack our work. Their criticisms usually disclose an incomplete understanding of where MMT came from and what the core propositions and logic are. They stylise, usually using terms and constructs that are present in...
Read More »Stephanie Kelton: ‘They’re going to have massive deficits. And it’s fine’ — Brendan Greeley
Positive article.Financial TimesStephanie Kelton: ‘They’re going to have massive deficits. And it’s fine’ Brendan Greeley
Read More »Coronavirus has destroyed the myth of the deficit — L. Randall Wray and Yeva Nersisyan
MMT in the headlines again. The last mile is pretty much closed.The GuardianCoronavirus has destroyed the myth of the deficit L. Randall Wray, Professor of Economics, Bard College, and Yeva Nersisyan, Associate Professor of economics at Franklin and Marshall College
Read More »Modern monetary theory—pandemic edition — David F. Ruccio
David Ruccio compares MMT with Marxian economics.Occasional Links & Commentary Modern monetary theory—pandemic editionDavid F. Ruccio | Professor of Economics, University of Notre Dame
Read More »How the Government Pulls Coronavirus Relief Money Out of Thin Air — Matt Phillips
I am going to break a rule and link to this at the New York Times because it is noteworthy owing to its implicit support of MMT. The New York Times is "the paper of record" so this is a big deal.But aware that you may encounter a paywall. I don't usually link to paywalled sources.New York TimesHow the Government Pulls Coronavirus Relief Money Out of Thin Air Matt Phillips
Read More »IMF Urges Post-Pandemic Stimulus to Avoid Depression Mistake — Rich Miller
The International Monetary Fund wants policy makers to avoid repeating the Depression-era mistake of ratcheting back budget deficits. Instead, it’s urging them to ramp up fiscal stimulus when the coronavirus contagion starts to abate.… This doesn’t sound all that different from the prescription of Modern Monetary Theory proponents -– a heterodox economic school that contends countries such as the U.S. can run bigger budget shortfalls without worrying about going broke because they print...
Read More »Bill Mitchell — A 10 per cent unemployment rate is not a “tremendous achievement” – it is a sign of total policy failure
It’s Wednesday, and a quiet day for writing blog posts for me. But I want to comment briefly on the latest economic news that sees the IMF claiming the Australian economy will contract by 6.7 per cent in 2020 and the Treasury estimates that the unemployment rate will rise to 10 per cent (double) by June this year. While this all sounds shocking, the emerging narrative in the media and among politicians is that this is sort of inevitable given the health crisis and the Government’s Job...
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