Rodger Mitchell — Republicans double down on middle class destruction. Dems not far behind.

Rodger pulls out all stops and comes out with guns blazing. Good for him. Tell it like it is.

Monetary Sovereignty
Republicans double down on middle class destruction. Dems not far behind.
Rodger Malcolm Mitchell

Rodger Mitchell — Why MMT frustrates the hell out of me

Well, I guess Mike Norman would agree with you, Rodger. Time to take the gloves off.

But it seem to me that at least some the MMT economists are pretty edgy for academics, and I don't know how much farther Randy Wray, Bill Mitchell, and Stephanie Kelton can go. UMKC profs Bill Black and Michael Hudson are also at the front line. Jamie Galbraith, too. They are prolific enough, and I don't detect a lack of passion for the cause. They are just not getting media coverage yet, although it is growing.

My own feeling is that concerted action by as many economists and financial professionals as possible, from whatever school of thought, is needed, instead of arguing with each other over finer points, while the neoliberal establishment is burning down the house.

It should be possible to some simple framing on the big issues like the damaging effect of deficit hysteria and public debt reduction, while calling for a demand-based solution instead of supply-side.

Monetary Sovereignty
Why MMT frustrates the hell out of me
Rodger Malcolm Mitchell

Rodger Mitchell on Dylan Matthews on MMT

As always, Rodger scores some good points.

Read it at Monetary Sovereignty
The Washington Post’s best economics article, ever. And still it’s wrong.

by Rodger Malcolm Mitchell

John Carney — More Questions About the Job Guarantee

I have taken a hiatus from raising questions about the job guarantee component of Modern Monetary Theory, mostly because I discovered that no one has the answers to the questions I was raising.

But others are still carrying on the debate. For those of you still interested, I'll periodically provide links to the debate.

Read it at CNBC | NetNet

More Questions About the Job Guarantee

by John Carney | Senior Editor

John raises five points, with links involving Rogue Economist, Rodger Mitchell, Randy Wray, Bill Mitchell, and Joe Firestone.

Rodger Mitchell – Again I lay my head on the MMT chopping block. Why JG (formerly ELR) is obsolete.

Read it at Monetary Sovereignty
Again I lay my head on the MMT chopping block. Why JG (formerly ELR) is obsolete.
by Rodger Malcolm Mitchell

More heat about people's positions on the JG

Read it at Monetary Sovereignty
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?”

by Rodger Malcolm Mitchell

Well, I really did it this time. A few days ago, I posted Why Modern Monetary Theory’s Employer of Last Resort is a bad idea, and I feel like a guy who has kicked a hornet’s nest. The MMT folks have responded in exactly the same way debt hawks respond when they are told they are wrong (which proves people are people, no matter what their stripe).

Here is just one of many written comments I received, and this is 100% verbatim: “Are you serious, or just yet another crazy, rightwing, Austrian nutjob jacking off in public to get your jollies off?” Believe it or not, that clever note came to me from one of the most respected MMT people in America. I won’t embarrass him by giving you his name, but if you know MMT, you know of him.

I know what you are thinking, but it wasn't me. :)

Rodger Mitchell — Preventing and Curing Inflation: Modern Monetary Theory vs. Monetary Sovereignty

Read it at Monetary Sovereignty
Preventing and Curing Inflation: Modern Monetary Theory vs. Monetary Sovereignty

by Rodger Mitchell

Rodger reports on an exchange with Warren Mosler, and a summary of Rodger's view. Definitely an addition to the inflation debate regarding the monetary v. fiscal approaches to inflation control.

Rodger Mitchell joins the attack on the MMT JG

Read it at Monetary Sovereignty
Why Modern Monetary Theory’s Employer of Last Resort is a bad idea.

by Rodger Malcolm Mitchell

Rodger Malcolm Mitchell — Barry Ritholtz finally gets it - corrected

After a somewhat acrimonious exchange with Rodger some time ago, Barry Ritholz now:

The US still controls its own currency and issues debt in that currency. The US government can always fund its spending, regardless of access to external debt markets or tax revenues, so long as it keeps inflation under control and doesn’t push aggregate spending beyond the economy’s capacity.

The euro zone isn’t like that. The governments of France, Italy, Spain, and Germany issue debt in the euro, a currency they do not control.

Read it at Monetary Soverignty

Does Barry Ritholz finally get it? Did he “know” it all the time?
by Rodger Malclm Mitchell

My comment at Rodger's: "Krugman cannot be far behind."

UPDATE!

Oops. Retraction required.

Peter points out in the comments that the article Rodger quotes from is by MMT-friendly John Carney of CNBC rather than Ritholtz. While Ritholtz is quoted on the article on another matter, it does not appear that he is associated with the the quotation above.

Thanks to Peter for catching that.

Rodger Malcolm Mitchell to Occupy Wall Street

Rodger advises Occupy Wall Street that the sky is the limit if they acquaint themselves with monetary sovereignty. If they don't, they will self-sabotage with counterproductive objectives and demands.

An open letter to #OWC — or in my geographical case, #Occupy Chicago

Rodger Malcolm Mitchell — “Figures don’t lie, but liars figure.”

–A quick lesson: How Economists Lie, Using Graphs

A comparison of the same data displayed in a variety of ways reveals startling differences in import.

Rodger Mitchell - Monetary Sovereignty versus Modern Monetary Theory

How Monetary Sovereignty differs from Modern Monetary Theory — simplified

Some have asked what is the difference between Monetary Sovereignty (MS) and Modern Monetary Theory (MMT). Others use the terms interchangeably. Actually, while both share many features, there are differences....

The more important difference between MS and MMT is the handling of inflation. MS suggests increasing interest rates when inflation threatens. MMT holds that increasing interest rates exacerbates inflation by increasing costs, and that the correct prevention/cure for inflation is to reduce federal deficits, with higher taxes and/or with reduced federal spending.

MS says:

1. Deficits have not been related to inflation for at least 40 years. Instead, inflation has been related to oil prices. Since deficits have not been the cause, reducing deficits is not the cure.

2. Reduced federal deficits lead to recessions and depressions, meaning the MMT approach leaves a poor choice between inflation and recession, or a very difficult balancing act between the two.

3. Reducing federal deficits cannot be done quickly or incrementally. The questions surrounding which taxes to raise or which spending to cut are slow, difficult, cumbersome and politically charged, as witness the repeated battles over the debt ceiling. Deficit control is ill suited to inflation fighting, which needs fast, incremental action.

4. Interest is a minor cost for most businesses, and an increase in interest rates represents a minuscule increase in business costs – not enough to affect pricing significantly.

5. Money is a commodity, the value of which is determined by supply and demand. Demand is determined by risk and reward. The reward for owning money is interest, so when interest rates increase, investment tends to flow to money (i.e. bonds, CDs, money markets), increasing the value of money. When interest rates fall, investment tends to flow to non-money (stocks, real estate), reducing the value of money. Increased money value is the prevention/cure for inflation.