Some weeks ago I had a good back-and-forth with the indomitable JKH in the forums about how useful Mosler's "paradigm shift" approach was vs JKHs "strictly the accounting" strategy. Mosler plays fast and loose with the language a little at time to better get his point across, and my position was (and remains) that if your goal is to knock people out of one way of thinking and into another, then sometimes you need to hit them over the head. But I don't think anyone has quite cracked that nut (no pun intended).
And yes, the term "paradigm shift" is grotesquely over and mis-used, but I think in term of MMT/PK vs standard academic economics, it is the correct term as we really are talking about taking an entire worldview, not just an isolated theory, and all of the implications that come with it; and jettisoning it for something else. This is a multiple-organ transplant procedure here, not a buttock lift, so roll up your sleeves.Conceptualization counts when one is bucking the mainstream model.
Winterspeak
Intentionality and Accounting
Accounting is essential, but in itself is yields no information about causation other than the limited amount of tautologous information that is contained in the mere definitions themselves. So it doesn't give you much economics and is barren when it comes to both policy recommendations and understanding why things happen the way they do..
ReplyDeleteAccounting is bean counting, it doesn't make or help make the beans grow.... That said, its important but we have to constantly remember it is ex post.... After the facts are in.. The feedback we get from it is important in formulating the future path.....rsp
ReplyDelete"The feedback we get from it is important in formulating the future path..."
ReplyDeleteRather than fulminating the path so far? There goes 80% of human discourse!