Subsequently, Hudson sent this message to gang of 8:
Mitch Green at UMKC has thoroughly re-edited and improved my article from today’s NEP and Counterpunch (and Steve Keen’s blog). MichaelThe edited version is a definite improvement and contains points for discussion, such as the Minskian aspect of MMT that requires reform in addition to fiscal policy adjustment and the neoliberal position regarding trade under a floating rate system holding that currency adjustments will resolve imbalances arising from disproportionate labor costs among countries.
It seems to me that Hudson is articulating a more nuanced MMT position, taking composition of debt into account, instead of challenging it arguing that the outsized role that FIRE has carved for itself, along with a tax structure that shifts taxes disproportionately onto labor relative to ability to pay, is leading to unsustainable private debt, public debt being used to funnel wealth to the top, and a trade imbalance arising from non-competitiveness of US workers due to their debt burden. The upshot is that there is a distributional problem that has become structural due to mishandling of debt.
Perhaps comments on the revised edition are called for.
Read it at New Economic Perspectives
Paul Krugman’s Economic Blinders
by Michael Hudson