Thinking about it – it is nothing short of astounding that three scholars almost single-handedly (triple-handedly?) eventually upended the massive “Great Vampire Squid” (to steal Taibbi's line) that is neoclassical economics in our universities, central banks, and government.
As MMT has “taken off” its founders and others have begun to preserve and reflect on its history (1). That history will be well covered as it will prove to be central to (genuine) macroeconomic history one day. Leaving that to others, I enjoy thinking about subtle influences, intellectual links and lineages, that go less … Continue reading A (Very) Oblique History of MMT (Wray, Institutional Econ, & other ramblings): Part I
“IF THERE IS FIRST NO COLLAPSE IN PRODUCTION, NO ELITE MINORITY, AND/OR NO FOREIGN DENOMINATED DEBT, YOU GET NO HYPERINFLATION. JUST SOME OTHER TYPE OF TRANSITION OR STATE FAILURE.”
[Under construction 🚧 ] Mosler, Forstater 1999, A General Analytical Framework for the Analysis of Currencies and Other Commodities (copy from book, awkward format but with diagrams)
"Having read your book, I would include it in that short list of books. If your book is read by a lot of people, it will do a great service."
According to Reinhart and Rogoff the danger is both outright (de jure default) and de facto default from inflation and financial repression. However, like their discredited “growth” paper, the “default” argument is also based the on the improper use of statistics.
Let's look into the actual ethnography.
Humphrey's primary ethnographic research for the paper Graeber cites as definitive was based on her research of the Lhomi of the Arun Valley in northern Nepal near the Tibetan border.
Of the Lohmi, Humphrey writes (1985, pp.54-55): "Before the virtual closure of the Tibetan border by the early 1970's which followed the Chinese invasion, the Lhomi engaged in three kinds of barter." These are:
(Re: Just When Should We Start Worrying About Deficits?) Kelton: "Deficits...can be too big." Why did Kelton so easily cede this point to Noah? "Deficits" (tax:savings ratio) do not realistically matter unless a government were to make insane fiscal policy choices. She lets Noah frame the discussion in a neoliberal fantasyland and thus loses the … Continue reading Kelton Shouldn’t Have Ceded This Point To Noah