Randall Wray, one of the leading lights of Modern Monetary Theory, has responded at length to some of my critiques.
His response actually demonstrates one of my critical points: MMT is too complacent about the harm government inflicts. In what follows, I’ll show how Wray’s view of Social Security as “credit bank accounts” leaves him with a myopia when it comes to the behavioral effects of the Social Security program. Then I'll show how this same myopia effects how MMT tends to view the financial crisis.
Read it at CNBC NetNetSocial Security, the Financial Crisis & Modern Monetary Theory
by John Carney | Senior Editor