...This needs the vaccination of Chartalism: only a too-big-to-fail organization that wants its nominal debts to have value as a byproduct of accomplishing other purposes–like governing–can durably levitate the value of its fiat money above zeroWCEG — Washington Center for Equitable Growth
Brad DeLong
3 comments:
Don't agree with that quote. A purely conventional medium of exchange can have some value. It's just that without the backing of a state, the value can't be stabilized across space and time, and the convention is not likely to last very long.
It's great to see a mainstream economist such as DeLong quoting (approvingly) articles that mention the works of Wray and Forstater and trace the origins of their ideas not only to Knapp but also to Adam Smith.
While both Krugman and DeLong seem to be getting closer to Chartalism only the Berkeley Professor shows no reluctance to mention the names of the contemporary promoters/developers of that theory. A very welcome development, indeed.
DeLong's wife, Ann Marie Marciarille, is a law professor at UMKC, so he knows the UMKC econ faculty personally. Warren reports that he and Krugman have talked in St. Croix, but I don't know whether PK knows any other MMT folks personally.
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