I am now using Friday’s blog space to provide draft versions of the Modern Monetary Theory textbook that I am writing with my colleague and friend Randy Wray. We expect to complete the text during 2013 (to be ready in draft form for second semester teaching). Comments are always welcome. Remember this is a textbook aimed at undergraduate students and so the writing will be different from my usual blog free-for-all. Note also that the text I post is just the work I am doing by way of the first draft so the material posted will not represent the complete text. Further it will change once the two of us have edited it.
Previous Parts to this Chapter:
▪ The IS-LM Framework – Part 1
▪ The IS-LM Framework – Part 2
▪ The IS-LM Framework – Part 3
Chapter 16 – The IS-LM Framework
16.5 Policy analysis in IS-LM
Bill Mitchell – billy blog
IS-LM Framework – Part 4
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the Charles Darwin University, Northern Territory, Australia
IS-LM Framework – Part 4
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the Charles Darwin University, Northern Territory, Australia
Why is it useful to know the IS-LM model when considering MMT. Why waste space in the text learning about the IS-LM model only to go on and explain that it is disproven.
ReplyDeleteSurely a text on a sound theory should focus on that theory not waste energy disproving competing theories.
Expending energy explaining and disproving other theories suggests a lack of confidence in the MMT theory. Is the MMT theory so lacking in scientific enquiry that its existence can only be ensured if competing theories are trashed and buried. Is it theology or science?