Abstract This paper discusses Modern Money Theory (MMT) from the perspective of a New Currency Theory (NCT) as represented by proponents of monetary reform. In the paradigmatic framework of currency teachings versus banking teachings, MMT, in contrast to its self-image as a chartal theory of money, represents banking theory much more than currency teaching. Its understanding of fractional reserve banking and monetary sovereignty is misleadingly incomplete. Thus, NCT’s analyses appear to be a more adequate foundation for modern sovereign money.Another economist pontificating about the monetary system based on "fractional reserve banking."
real-world economics review, issue no. 66
Modern Money Theory and New Currency Theory — A comparative discussion, including an assessment of their relevance to monetary reform
Joseph Huber, Martin Luther University, Germany
Joseph Huber, Martin Luther University, Germany
See also Warren Molser, AMI report
AMI keeps hitting new lows
3 comments:
I'm having a close look at this work by Huber, and am half way thru it. It's such a poor piece of work that I probably won't bother with the second half. I'll put something about it on my own blog shortly.
It's a real pity AMI is so hard on MMT.
Can I take the chance to point to this AMI post (https://groups.google.com/forum/#!topic/the-american-monetary-institute/wjFfHGIjDfA)
where they're inviting MMT to discuss about this?
"...We'll be happy to invite the UMKC Econ Department to send a speaker(s) of their choice, to present/discuss/debate there."
Huber wants to give the full seignorage back to the state.
MMT leaves the seignorage for digital bank money with the private banks. But then MMT proposes that the state takes back some or most of the interest gains from the private banking sector. So Hubers plain money approach and MMT just have technically different ways to reduce some of the unearned interest gains.
I understand that from a European perspektive MMT is a little too bashful in normatively advocating welfare oriented policies.
In the US it is impossible to get media attention when you go for socialdemocratic issues.
It would be nice to get some reflection on Hubers critic from Kelton or Wray.
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