What I don't understand about MMT (2015, sell, wages, banks)
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I think there's a difference between the MMT academic economic theory that dates to the early 90s, and the pop culture version some leftists push as a "we can spend any amount ad infinitum on anything we want" and use it to create some kind of social engineering.
Respectfully, no, there is no difference whatsoever. Both are sloganeering. Neither has a formalized set of testable equations that macroeconometricians can evaluate using actual historical data.
I would call MMT pure baloney but that is an insult to cold cuts.
Respectfully, no, there is no difference whatsoever. Both are sloganeering. Neither has a formalized set of testable equations that macroeconometricians can evaluate using actual historical data.
I would call MMT pure baloney but that is an insult to cold cuts.
All that tells me is perhaps the econometricians should start exploring it?
I have yet to hear an economist adequately explain why there is not demand-pull inflation going on right now. In fact if you search that question, economists have been struggling with it ever since the the end of the 2008 crisis, so I'm not convinced they have all the answers. MMT, or at least parts of it, might help explain why our prevailing theories of inflation are not playing out.
No peer review? Dude, do a Google Scholar search for L. Randall Wray. MMT has published literally hundreds of peer reviewed articles. Easily in the double digits just last year alone.
All that tells me is perhaps the econometricians should start exploring it?
I have yet to hear an economist adequately explain why there is not demand-pull inflation going on right now. In fact if you search that question, economists have been struggling with it ever since the the end of the 2008 crisis, so I'm not convinced they have all the answers. MMT, or at least parts of it, might help explain why our prevailing theories of inflation are not playing out.
I never know when you are serious or just playing around. I don't like their outlooks but Stiglitz and Krugman are whales, you know Nobel Prize winners, in the business both flatly reject MMT as nonsense.
I'm assuming your question isn't a joke.........and leaving the Phillips Curve vs. full employment for later, we've seen little demand pull inflation across important sectors exactly and only because demand has not outstripped supply per most sectors. That said we have seen some.......demand for soft wood has outstripped supply and prices have risen sharply. Demand for semi-skilled labor (construction) across much of the country has outstripped supply resulting in both increased "prices"/costs and or delays.
There's a money, reserves and saving(s) angle I avoided that we can talk about if you'd like but it's muddy.
No peer review? Dude, do a Google Scholar search for L. Randall Wray. MMT has published literally hundreds of peer reviewed articles. Easily in the double digits just last year alone.
If you have an hour please read this. If not skip to footnote 2 at the bottom of page 4 and then skim. Palley is another whale in the business who sees MMT as a negative.
Politically, in light of covid stimuli, I think it's a useful tool to respond to the "how are you going to pay for that?" canard that is used to shoot down social democratic reforms. Money is not zero sum. Covid has proven that it is possible to print more money than we thought we could, and nothing bad happens.
Well here we are and we have spent much more than even the most liberal people were calling for in 2009-10. No economic crisis has ensued and the markets seem to love it.
What does 2009-10 liberal thought have to do with proving spending in 2020 supports MMT? You seem to be trying to use a pandemic to prove MMT is true.
What does 2009-10 liberal thought have to do with proving spending in 2020 supports MMT? You seem to be trying to use a pandemic to prove MMT is true.
Conventional thought is grounded more on a gold std. and taxes. With more modern money application at the federal level gold or taxes are not necessary, and new money can be more easily and quickly created. The incitement of inflation is not a given.
Right now this new Covid 19 directed money comes through Fed actions. And of course that can be reversed.
Conventional thought is grounded more on a gold std. and taxes. With more modern money application at the federal level gold or taxes are not necessary, and new money can be more easily and quickly created. The incitement of inflation is not a given.
Right now this new Covid 19 directed money comes through Fed actions. And of course that can be reversed.
None of that is either an argument for MMT or point to The US currently employing MMT - we simply don't.
As long as you print money to finance deficits to provide jobs and basic income support for those unable to work, you are replicating MMT. The discretionary budget in the US, of which the military budget is a third, has to be financed by borrowing about 1.2 trillion dollars. Nobody wants to pay for the bloated budgets, not even the corporations who profit from it.
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