tag:blogger.com,1999:blog-2761684730989137546.post6822252652951631491..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Dirk Ehnts — Modern monetary theory: a simple macroeconomic modelmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2761684730989137546.post-11650874180322717332019-06-04T12:05:06.983-04:002019-06-04T12:05:06.983-04:00Simple model? Look at the graph! There is no way t...Simple model? Look at the graph! There is no way this can be called "simple"! Actually, he made a simple thing into a complex monster...<br /><br />Isn't it much simpler to claim that (S-I) = (G-T) + (X-I)?<br /><br />I don't even know whether what he claims is true and compatible with MMT... for example, this seems wrong:<br /><br />"Be it an increase in government spending, in debt-financed private investment and/or in exports, all these transactions create new net (bank) deposits in the economy. Deposits are in turn drained away by private saving (repayment of debts, for instance), taxation and imports. It is thus plausible that there is a relatively stable connection between changes in net deposits and income"Andréhttps://www.blogger.com/profile/10935332922520483975noreply@blogger.com