Tag Archives: MMT

Scraping the bottom of the barrel. Mocked on Twitter. Michael Strain is straining. The Establishment is grabbing at straws as their world begins to collapse. Of course, the "joke" is not funny when the joke is on you. Actually, his attempted screed is pretty funny. He is forced to admit that MMT has it right and then look for reasons like political irresponsibility that admitting it will blow up the world.Bloomberg Opinion‘Modern Monetary Theory’ Is a Joke That’s Not Funny Michael R....

WHat MMT actually says is simply, as the FT notes: a different way of looking at fiscal policy, a way of describing what the real-world constraints on spending look like. Much of the rest can be taken or left, at will. Because it is not MMT.... Richard Murphy curiously proclaims that he understand MMT better than the MMT founders and limits the scope and scale of MMT based on his preferences.In reality, MMT is:1. An operational and institutional description of modern monetary systems, with...

While the Brexit shambles wound on in London, with the Prime Minister being walloped one day by her own party, and then the next given a victory, courtesy of some Labour Party bungling (the no-confidence motion), across the Channel things have been turning markedly sour. While the Europhile Left hold Europe dear to their hearts, the reality is that their dreamworld is falling apart. This is not only because of the incompetence of its polity but also because of the deliberate strategies of...

Americans are just fine with debt. When they fight about it, they're actually negotiating in code over something else: what programs are so important that it doesn't matter how you pay for them?A little more than a month ago, Howard Dean had breakfast at the Hotel Vermont in Burlington with Stephanie Kelton. Mr Dean has served as Vermont's governor, a candidate for President, and head of the Democratic National Committee. Ms Kelton, who teaches economics and public policy at Stony Brook...

[Draft of the forthcoming book “1000 Castaways: Fundamentals of Economics.” I am posting chapters online to have it available as soon as possible and to receive input before a final version is released. I will be rolling out Chapters and linking them to this Table of Contents]Introduction System One System Two Balancing the Two Systems The Real World Clint invites your comments and critique. Clint Ballinger1000 CASTAWAYS: Fundamentals of Economics

Independent economist Peter Cooper addresses the "we-knew-it-all-along" claim and shows, not really.heteconomistOne of the Fundamental Differences Between Modern Monetary Theory and New Keynesian EconomicsPeter Cooper

Whilst I agree, could politicians not be persuaded that, rather than a largely useless National Citizen’s Service, we could have a instead have a ‘Job Guarantee’ or perhaps better sold as a ‘Guaranteed Job Opportunity’ for everyone of school leaving age. Of course many will be going to university but some might like to take advantage of some work experience before arriving in full time education. Indeed with effort and thought perhaps a Job Opportunity could also be guaranteed to...

What happens when a business runs at a loss? If it happens for long enough, eventually it’ll go bust. So why should it be any different for the government? Doh. Another Johnny-come-lately who still hasn't heard that the government is the currency issuer and that everyone that uses the currency must obtain it ultimately from the issuer as the monopoly provider.Therefore, currency users are financially constrained, whereas a government that is sovereign in its currency is not constrained...

This discussion has foundered on the rocks of semantics. The assertion is that imports are a real benefit and exports are a real cost. This is means that real resources are being transferred from domestic use in the case of exports, which is a real cost domestically, and real resources are being received in the case of imports, which is a real benefit domestically.Countries trade with each other either to obtain goods less expensively than they can be produced domestically, or to obtain...

Favorable post on Fadhel Kaboub's presentation of the MMT JG. There is a bit of confusion in the post, however. The presentation is worth watching in full, not least because it contains a fairly straightforward explanation of MMT, and because, in a brief aside, Kaboub takes issue with the term Modern Monetary Theory, because, as he rightly points out, it is not a theory but a description of how money creation actually occurs in countries that enjoy full financial (monetary) sovereignty...