Prologue The worry about a "danger" from understanding how government actually functions/spends was already famously stated by Paul Samuelson decades ago: I think there is an element of truth in the view that the superstition that the budget must be balanced at all times...Once it is debunked, [it] takes away one of the bulwarks that … Continue reading Democracy & Profligacy: Will MMT Destroy the World? Part I of III on the Government Spending→Inflation Myth
Any argument that there is a “fiscal policy versus monetary policy” debate that somehow suggests we primarily rely on the latter is misspecified. You cannot not be primarily “doing fiscal,” it is simply not possible. (Whether done well or not is a different issue; the very belief that somehow fiscal takes a backseat is the key reason it has been done poorly for decades).
We have to think not just of the goods, but also think of "productive capacity" & "varied economy" as "real resources" when we make society-wide import/export calculations
"What happened to get the ideas out was the development of blogs.So Bill developed a blog...This is how the ideas got out. It wasn't through academics. It wasn't through the conferences—those are almost a complete bust. It was the blogs.L. Randall Wray (11 min mark generally, 14 min mark for these qts) A (Very) Oblique … Continue reading A (very) oblique history of MMT, Part III: (Blogs, Mitchell etc.)
[Image: Charge of German infantry against the Russian fortress of Novogeorgievk, 1915. Germans sieging Russians in Poland in other words, soon all to have their currencies collapse.]
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.
This simple fact in no way contradicts chartalism nor credit-concepts of money. It augments them
It is not only perfectly possible for there to be a role for early exchange for understanding the origins of currency systems. It is almost surely necessary.
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
"Show me your model [’s non-banal output useful for policy, prediction, or at least understanding the real world better than verbal/visual methods; granted toy models are useful for teaching some classroom concepts] !!!" It is well known that mainstream DSGE economic modeling is hopelessly flawed (e.g., here, here, here [discussed here], here, here, here, here, here, … Continue reading Do Economists Dream of Electric Gödel Machines?