Monday, February 20, 2012
Progressives, who are you going to believe, Matt Yglesias or Jamie Galbraith?
Is the inflation of the 1970s a myth? I don't think it was, but something Dylan Matthews' excellent overview of Modern Monetary Theory illustrates is that some people think it was. That to me is a mistake, and people should try to separate the merits of heterodox macroeconomic theory (which I think are considerable) from a handful incidental political commitments that its adherents have. The core point of MMT is that if you have a freely floating fiat currency then the sovereign can't "run out of money" and the point of taxes is to regulate demand not to finance government activities. But even though this is a "heterodox" view, I think few mainstream people would actually deny it. Instead they think that talking in these terms will lead to dangerous inflation. I think that fear is overblown, but not as overblown as Jamie Galbraith thinks it is....
Read it at Slate | Money Box
By Matthew Yglesias
(h/t Ben in the comments)
Who are you going to believe, Matt Yglesias or Jamie Galbraith? Maybe Matt should have taken counsel and consulted with Jamie before making a fool of himself.
Why are some many progressives clueless about issues that are vital to advancing their interests?