An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Monday, September 5, 2016
Andrew Lainton — Why SFC models are based on Better Theory – a Response to Simon Wren Lewis
Criticism is an opportunity to respond and clarify.
I guess i dont understand the point of the article.. b/c a model that's not sfc is automatically wrong. Monetary flows are conserved. One sectors deficit is another's surplus- holds always... imo, a rudimentary understanding of sfc gives you the tools to imediately determine nonsense from the plausible, such as ruling out wideapread austerity as being causally expanionary...
I guess i dont understand the point of the article.. b/c a model that's not sfc is automatically wrong. Monetary flows are conserved. One sectors deficit is another's surplus- holds always... imo, a rudimentary understanding of sfc gives you the tools to imediately determine nonsense from the plausible, such as ruling out wideapread austerity as being causally expanionary...
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