As usual, the criticism doesn't seem to take into account the body of MMT literature and the historical debate within Post Keynesianism surrounding the issues. Moreover, it assumes away recognized issues in conventional theory. Brian deals with this deftly.
2 comments:
"Anything that causes such hoarding behaviour to increase will increase government debt level while keeping "capacity utilisation" essentially the same."
Brian maybe try to create a variable H or something that would quantify this phenom...
If source spending flow was to be re-directed to a part of the system with lower H, then we could increase output with just the same source spending flow...
Current situation is China has had a high H, so if we re-direct spending flow away from China we will probably see higher GDP with just break even leading govt spending flow...
Well, I am now writing a book on SFC models (my book on money is now in the hands of a copy editor), and I will probably discuss this from a technical point of view. It would be didficult to come up with a strong characterisation, but I will think about it.
Post a Comment