This is a brief response to Warren Mosler’s contribution to a dialogue with Joe Firestone, who has put together an excellent multi-part series that can be read by following the link provided. In this post, I am addressing only the section on the Job or Income Guarantee. Mosler makes the familiar MMT claim that the value of the currency is determined “at the margin”, and from this takes a leap to the conclusion that a BIG as part of the JIG would cause a collapse in the currency, hyperinflation, doomsday, etc.
I don’t see any need to respond in depth, because I have already addressed this argument in a previous post (though not with Mosler in mind) and a few comments. My view is that the MMT conception of the value of the currency being formed “at the margin” is incorrect:
Read it at heteconomist.comResponse to Warren Mosler
by Peter Cooper