An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Saturday, March 22, 2014
Phil Pilkington — Monetarism is the living dead of economic theory – let's kill it off
Phil schools the Bank of England and Her Majesty's government.
A very muddled article by Phil Pilkington. He attacks the idea the quantity of money is important without distinguishing between base money and commercial bank created money (vertical and horizontal money, to use different terminology).
MMTers attach importance to what they call “private sector net financial assets” of which base money is an important component. And quite right. So to that extent, PP’s article is not MMT compliant.
A very muddled article by Phil Pilkington. He attacks the idea the quantity of money is important without distinguishing between base money and commercial bank created money (vertical and horizontal money, to use different terminology).
ReplyDeleteMMTers attach importance to what they call “private sector net financial assets” of which base money is an important component. And quite right. So to that extent, PP’s article is not MMT compliant.