Yves shows how DeLong's notion of the liquidity trap is untenable, citing a number of MMT economists is support of her argument — Marshal Auerback, Scott Fullwiler, Stephanie Kelton, Bill Mitchell, Rob Parenteau, and Randy Wray. This post definitely elevates MMT and is worth reading for that, even for those that are already familiar with the refutation of liquidity traps.
Always exciting to MMT in ultra high-traffic places...
ReplyDeleteWhen are the MMT heavyweights going to invite the likes of DeLong, Krugman, Stiglitz etc. to a nice lunch and hash this all out? Get Galbraith to set it up or something. The blogging is definitely getting MMT places, but I think some real-world interaction is necessary... (duh.)
I mean, seriously. I'll help pitch in for the flights and food. I'm sure we could run a fundraiser. :)
ReplyDeleteTom,
ReplyDeleteSomething has happened to "Yves" (Susan), she really does "get it" wrt MMT starting about a month or two ago... she is really on fire lately, really advancing the debate in the blogosphere... I am really glad to see it... then her pressing the Roosevelt Inst. wrt taking Peterson $: Nobody else could do it. Then this with orthodox B DeLong it's just great...
wh10: You have some good ideas! I hope they would listen to you. the folks you cite are called "deficit doves" (ultimately desire balanced budgets) and Galbraith is a deficit "owl" (let the sectoral balances work themselves).
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Excellent article. Thanks also for the comments about Yves (Susan?)...
ReplyDeleteDan, Yves Smith is the pen name of Susan Webber of Aurora Advisers.
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