Tag Archives: 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...

Positive article.Financial TimesStephanie Kelton: ‘They’re going to have massive deficits. And it’s fine’ Brendan Greeley

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

David Ruccio compares MMT with Marxian economics.Occasional Links & Commentary Modern monetary theory—pandemic editionDavid F. Ruccio | Professor of Economics, University of Notre Dame

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

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...

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...

Longtime friend Yves Smith of Naked Capitalism published an interview today with Richard Vague, Pennsylvania's acting Secretary of Banking and Securities, that takes issue with my last two Substack pieces on the recent bailouts. Both Vague and Yves seem to think I've been "acrophobic" about modern Monetary Theory and perhaps unconsciously mired in questionable orthodoxies about debt and government spending.... Matt TaibbiA Quick Note In Response to Naked Capitalism— I'm phobic about...

Productive capital versus fictitious capital.Reminiscence of the FutureWhat Could Be Better Than...[Reading Michael Hudson] Andrei MartyanovSee also from Andrei Martyanov today.Who Would Have Thought. Reading The Signs. Noblesse Oblige 2.0.

MMT is a theory of empire. This is not to say that its advocates are imperialists. Rather, they are observers who note a reality that the post-colonial thinker has long understood – imperialists can run the world on whims and fictions. The question is ultimately, what are the merits of the whims. Should the US spend a trillion dollars invading a country of herdsmen, or should it build better hospitals, airports, and highways? MMT does not take a position on this; it merely states that the...