Friday, September 14, 2018

John Doyle — The facts of Modern Monetary Theory

There are several misconceptions and misunderstandings as to the true meaning of Modern Monetary Theory,writes John Doyle.
Independent Australia
The facts of Modern Monetary Theory
John Doyle

1 comment:

Konrad said...

The above article falsely claims that MMT only applies to nations whose governments have monetary sovereignty (i.e. nations whose governments create their spending money out if thin air).

Example 1: MMT is a macroeconomic theory that describes and analyses modern economies in which the national currency is created by a monetary Sovereign Government.

Example 2: MMT simply looks at sovereign currencies such as the U.S., NZ and Australian Dollars, Yen, the Euro or the Pound Sterling as they actually are today.

First of all, the euro is not a sovereign currency. Second, MMT addresses all nations, whether or not they have a sovereign currency. For example, MMT explains that Greece has a debt crisis because Greece has a trade deficit, and because the Greek government has no monetary sovereignty.

The article mentions a different article in the Huffington Post: “Stephanie Kelton has the biggest idea in Washington. Once an outsider, her radical economic thinking won over Wall Street. Now she’s changing the Democratic Party.”

That’s a nice fantasy, but Wall Street, Washington, and Democrat leaders are as neoliberal as ever. They continue to uphold the lies about money.

Democrat leaders are even more neoliberal than are most Republicans.