Wednesday, September 21, 2011

Zero Hedge sights MMT at Goldman

Zero Hedge picks up on Jan Hatzius's latest report in which he explains the sectoral balance approach. The comments at ZH are of course dismissive, but they do get it that Haztius is "doing MMT." Actually, Haztius is following Wynne Godley, who he brought to GS for a while, but Haztius is not totally in paradigm either.

Unfortunately, the connection of MMT with Goldman is hardly a recommendation, given Goldman's current reputation. But any publicity is good publicity in that it increases name recognition.

As a bonus for the file, a commenter at ZH provides a link to an Austrian critique of MMT that I had not seen previously.


Bob Roddis said...

Where's that usual know-it-all MMT bravado and take-down of English Bob for his evisceration of MMT?

Tom Hickey said...

Bob R, I am weary of arguing with you dyed-in-the-wool Austrians, since we simply argue down to disagreement over fundamental principles. I have put my time in, learned your position, reject it, and have moved on. Maybe someone else wants to come along and pick up the argument, but I'm done with what I consider a waste of time for me. I am not learning anything and not convincing anyone either.

My background is in philosophy. This is exactly how argumentation goes in philosophy, too. As a result, different schools seldom continue to argue once they have established each others' fundamental principals and disagree over them.

If either economics or philosophy were based on some criteria concerning which everyone agreed, then the debate could be decided on that basis. But without either absolute or even agreed upon criteria, at a certain point further debate becomes pointless.