Tag Archives: MMT

By J.D. ALT It’s ironic that, at this moment, when the truthfulness and utility of modern money theory (MMT) is being publicly realized—(and even potentially implemented!)—that its singular vulnerability must emerge as a real concern: hyper-inflation. The most recent thing I’ve written—Paying Ourselves to Save the Planet­­—addresses the issue of hyper-inflation as follows: “Hyper-inflation” is a rate of inflation that happens so rapidly there’s no opportunity for people and businesses to...

Although a big fiscal package is in the pipeline (admittedly the Greatest Deliberative Body in the World is playing its usual log-rolling games), smashed supply, and rampant "money printing" (ha!), breakeven inflation in the United States is cratering (figure above). This is exactly what should have happened, although the big question is whether current pricing is an overshoot of fundamentals. (I leave that market call to the reader.) I outline why this puzzling inflation perspective is the...

Today is Wednesday which means it is my short blog post day. I have been travelling a lot today. By the way, there are still some things which cannot be attended to via the Internet, Zoom or otherwise. As I continue to calculate various things along the way to my 10-point or something plan which I hope to have final by next Monday. But with limited time today as I dodge and weave to avoid the virus, I have been reading a lot of the research literature about modelling epidemics. It is quite...

Ends with a political rant, but the part about "taxpayer money" being public money in reality is correct.SplinterThe Dangerous Myth of 'Taxpayer Money'Raúl Carrillo, practicing attorney and a director of The Modern Money Network and Jesse Myerson, an Indiana-based community organizer with Hoosier Action

There is now a great deal of discussion of modern monetary theory going on, precisely because it appears that the UK government (and others around the world) are now behaving in the way that it suggests is, and has always been, possible. What MMT says, as far as I am concerned, is as follows.... Richard Murphy has a slightly different understanding of MMT than the MMT economists, but he is essentially correct. The glaring difference is his position on the non-necessity of a job guarantee....

This post continues my thinking and analysis of the issues relating to the design of a fiscal intervention by the Australian government to ameliorate the damaging consequences of the coronavirus dislocation. Today, I delve a little bit back in history to provide some perspective on the current fiscal considerations. Further, I consider some of the problems already emerging in the policy response. And finally, I consider the lessons of history provide an important guide to the sort of...

Nathan Tankus is a go-to guy on the institutional side of MMT. Following Scott Fullwiler, I also highly recommended subscribing to his new blog if you are into the nitty gritty and don't want to miss anything since I will only be linking it selectively. Nathan offers a free and a premium service. Like MMT legal scholar Rohan Grey, Nathan is an up-and-comer and is already becoming a star. The MMT bench is broadening and deepening. Please support Nathan if you are interested and able. Here is...

Hidden in last Thursday’s announcement from the Bank of England that it intends to buy another £200bn-worth of mostly government bonds was this line:The MPC will keep under review the case for participating in the primary market.It might sound like dull techno-speak, but the mere possibility of the Old Lady of Threadneedle Street buying bonds directly from the government (i.e., in the primary market) is a big deal. Since gaining independence, central banks have liked to see themselves as...

The Coronavirus Crisis has caused economic havoc. In this article, Warren Mosler and Dirk Ehnts discuss policy proposals that are informed by Modern Monetary Theory (MMT). Brave New EuropeDirk Ehnts, Warren Mosler – A Euro Zone Proposal for Fighting the Economic Consequences of the Coronavirus CrisisWarren's draft proposal for the US from his Twitter feed:

Peter Bofinger argues MMT provides intellectual justification for a ‘whatever it takes’ fiscal response to potentially the biggest global postwar economic challenge.... Social EuropeCoronavirus crisis: now is the hour of Modern Monetary TheoryPeter Bofinger | professor of economics at Würzburg University and a former member of the German Council of Economic Experts