In Mitchell and Connors’ Figure 3, Step 2 is not “?????”. Appropriate actions must be present! So perhaps there is hope for this MMT research program in political economy; the MMTers are linking metaphor to policy much more directly than Democrats do, which MMT enables them to do. (More hope than simply waiting for all the fresh- and saltwater economists to die off, which is sometimes the only way that a paradigm shift can occur.) We might also take hope from straws in the wind like Warren Mosler publishing in U.S. News, the success of #mintthecoin, and even Obama’s taking The Coin more seriously than people thought at the time. After all, you lose until you win.
So, I can see this research program getting decent traction in our famously free press, but will that translate into traction with policy makers? Time will tell, but the eternal question — Are the elites stupid or evil? — will surely have as great an effect on the outcome as proper framing. And then there’s the public, and their notion of public purpose….
NOTE *** Apparently, in Australia, it’s still possible to use the word progressive without irony. I envy them.Naked Capitalism
Modern Monetary Theory Meets George Lakoff
Lambert Strether | Corrente
4 comments:
MMT this MMT that.
How does MMT work when your own sovereign currency is hi-jacked by banks via the derivative market of credit default swaps ?
The casino of Muncipalities and Credit Unions vs the Banks -
Given: derivative swaps were placed where Detroit would win and get paid by the banks if the interest rates went up. The banks were supposed to win if interest rates went down.
Who won ? The banks since they could rig the libor rates to crash the casino.
Surprise - heads Detroit loses, tails Detroit loses. Banks simply win.
Detroit goes bankrupt - Detroit loses again since the pensions go to the banks.
I would also like to point out the failure of math to stop the banks.
Why doesn't math get out there and kick some butt?
It's all maths' fault.
Math quants were paid by banks ... they created the vortex not the liar loans mortgage brokers or real estate bankers.
Two different products. The mortgage brokers, appraisers, etc. created the loans as assets that were desired by the banks for securitization, due to the demand for saving vehicles. The quants provided the rational for the derivatives. The rating agencies were at the interface between the mortgages as primary assets that were bundled as derivates and sold in the CDO-ABS-MBS market.
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