Tuesday , May 21 2019
Home / Tag Archives: Modern Monetary Theory

Tag Archives: Modern Monetary Theory

HOW TO PAY FOR THE WAR

Remarks by L. Randall Wray at “The Treaty of Versailles at 100: The Consequences of the Peace”, a conference at the Levy Economics Institute, Bard College, May 3, 2019. I’m going to talk about war, not peace, in relation to our work on the Green New Deal—which I argue is the big MEOW—moral equivalent of war—and how we are going to pay for it. So I’m going to focus on Keynes’s 1940 book— How To Pay for the War—the war that followed the Economic Consequences of the Peace. Our analysis...

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ZEN and the Art of Modern Money—Part 3

MMT for People in a Hurry By J.D. ALT POST #3  (Post #1, Post #2) OPERATION #2—The federal government buys something big for the collective good. NOTE: A much appreciated comment at Naked Capitalism re: Post#1 suggested that the term “Combustion Chamber” was misleading since the “fuel” (money) put into the chamber is not burned as in a motorcycle engine but is redistributed to other accounts. I was planning to point this out further into the narrative but the comment showed that would...

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ZEN and the Art of Modern Money (Part 2)

MMT for People in a Hurry By J.D. ALT POST #2  (See POST #1 here) FIRST: Prime the fuel-pumps As it stands, our diagram-machine has no fuel (“money”) in it, so it can’t operate. We could go through an exercise to imagine how it could prime itself in order to begin operations. But this would lead to other topics and considerations which would only distract us from our present goal—which is to simply understand HOW the diagram-machine operates—and how, and when, in the course of its...

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ZEN and the Art of Modern Money

MMT for People in a Hurry By J.D. ALT I’m expanding an earlier essay into a short, book-length piece I hope will be useful in the unfolding public debate about MMT. The piece will utilize the “operation” of a “diagram-machine” to illustrate how our modern money system actually works. My hope is that it will be accessible and easily understood by people who have a genuine interest in MMT, but little time or patience to delve into its operations and implications. I’m posting the narrative...

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Hippie-punching MMT

I have been trying to organize a decent exchange on MMT on the new financial media platform Real Vision. My first attempt got dropped because the conversation wasn’t forward looking, diving into the issues people care about, namely the likelihood that MMT-oriented policy prescriptions get executed and the ability of MMT-oriented policy prescriptions to deal with inflation, growth, inequality, or full employment. So I am still on the hunt, trying to organize a ‘debate’ around those...

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How Far Can We Push This Thing? Some Optimistic Reflections on the Potential For Economic Experimentation

Crossposted from Phil Pilkington’s Blog – Fixing the Economists. Readers are probably aware that there is quite a lot of discussion of Modern Monetary Theory (MMT) and the potential for fiscal experimentation batting around at the moment. Others have weighed in on this already, and I have little to add. It is striking, however, that most of the push-back — where there is push-back — is not focused on trying to discredit the idea that we should engage in fiscal experimentation. Indeed,...

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Tom Friedman Just Noticed that the UK “Has Gone Mad” (Part 2)

By William K. Black April 11, 2019     Bloomington, MN Part 7b of the MMT Series Part 7a is available here. Blair, Brexit, and Friedman Show the Need for MMT Insights Part One: The MMT Critique of Orthodox Microfoundations Orthodox ‘modern macro’ is based on ‘microfoundations’ that implicitly assume that firms profit-maximize, that there are no negative externalities, that there is no market power, and that there is no control fraud or predation. In sum, they assume out of existence...

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Tom Friedman Just Noticed that the UK “Has Gone Mad” (Part 1)

By William K. Black April 11, 2019     Bloomington, MN Part 7a of the MMT Series Tom Friedman’s April 2, 2019 column concluded “The United Kingdom Has Gone Mad.” To which, the only possible response is – ‘you just noticed?’ The UK went ‘mad’ 22 years ago when Parliament elected the odious Tony Blair Prime Minister. I think many Tory policies were mad long before that date, but the Labour Party opposed them. The entire UK did not go ‘mad’ until Blair created “New Labour” and adopted Tory...

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Democracies With Sovereign Currencies Can Dance

By Anonymous April 9, 2019 The mainstream attack on MMT is nothing less than an attempt to disguise the glaringly obvious error at the center of the mainstream view of economic thinking.  Mainstream economics is a nihilistic theory devoid of moral anchor.  Mainstream economics ceased to explore the operation of the real economy decades ago and has become an intellectual exercise that assumes the organization of modern society is justified simply because that is how it is.  While some...

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MMT Scholars’ Predictive and Policy Successes – Part A

Number 2A in the MMT Series By William K. Black March 31, 2019     Bloomington, MN Introduction The second article in this series deals with Modern Monetary Theory’s (MMT) predictive and policy successes.  The article has three, separately published, parts.  Part 2A deals explains why predictive ability and policy success are so critical – and notes that MMT’s critics have been conspicuously unable to provide a record of predictive failure by MMT scholars. Part 2B deals with MMT...

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