Stephanie Kelton — MMT ignores private banks and can't disaggregate the priv sector. Oh, wait ... That's a straw man.

Stephanie Kelton (@deficitowl) tweets:

#mmt ignores private banks and can't disaggregate the priv sector. Oh, wait ... That's a straw man. Both here:levyinstitute.org/pubs/wp_645.pdf

referring to:
Quantitative Easing and Proposals for Reform of Monetary Policy Operations by Scott Fullwiler and L. Randall Wray
Levy Economics Institute of Bard College, Working Paper No. 645

Philip Pilkington (@pilkingtonphil) tweets:
@deficitowl @carney Not fair criticism. When there's net private sec def, there's almost always trouble. Norm=saving. http://pragcap.com/wp-content/uploads/2010/12/sb1.gif

Looks like the discussion has migrated to Twitter:
@pilkingtonphil @carney Don't need priv sect def 2 get in2 trouble. Falling priv sector surp. will do. Slide 6 slidesha.re/wf5hGd

@deficitowl @carney True. True. But net priv def is big trouble. Even w/ big foreign surplus. MMT=right to aggregate! bit.ly/wIZoIe