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A very muddled article by Phil Pilkington. He attacks the idea the quantity of money is important without distinguishing between base money and commercial bank created money (vertical and horizontal money, to use different terminology).
MMTers attach importance to what they call “private sector net financial assets” of which base money is an important component. And quite right. So to that extent, PP’s article is not MMT compliant.
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A very muddled article by Phil Pilkington. He attacks the idea the quantity of money is important without distinguishing between base money and commercial bank created money (vertical and horizontal money, to use different terminology).
MMTers attach importance to what they call “private sector net financial assets” of which base money is an important component. And quite right. So to that extent, PP’s article is not MMT compliant.
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