Tuesday, February 26, 2019

Upholding Economics — What’s wrong with MMT?

In this article I will attempt (but probably fail) to critique MMT in good faith, but I will be targeting MMT as it is generally presented to the public — that is where I’ve digested most MMT content: mainly through MMT bloggers and on twitter. If this is at odds with some more academically pure version of MMT that exists in the literature, I can only suggest that modern monetary theorists could then work on their messaging somewhat....
Exactly how is that "good faith"?

In addition, the critique is confused by the author's lack of understanding of institutional arrangements and operational realities. All of this has been raised before and explained. Nothing new to see here.

Warren Mosler commented on Twitter: "Doesn't look like you've read my book."

What’s wrong with MMT?
Upholding Economics


Brian Romanchuk said...

I tweeted about this. Given the extremely low bar set by other MMT critiques in the past weeks, this article seems to be the best that we can expect... On the downside, the issue is that he is covering stuff that was argued to death years ago. Maybe new and exciting for some people, but good Lord, another discussion of consolidation of the central bank?

Dragging in what bloggers (like me!) say has some merits. How big a gap is there between “academic MMT” and “internet MMT”? (The possible existence of such a gap is why the Wray/Mitchell text should have come out a long time ago...) The Austrians have a similar divergence, with the difference there are almost no prominent Austrians left in academia. However, it’s ridiculous that anyone with a university education would focus on what people are tweeting, and not an academic literature. What exactly has happened to the university system?

The problem with the article is that it is a grab-bag of issues. It’s pretty hard to respond to, since there’s no single thesis.

Senexx said...

With a little bit of study of the literature and time to internalise it I think he will come around. This is a pretty moderate/neutral article in the scheme of things.

When I first read it I thought if he/she understood Institutional arrangements, as you say, he/she would come around.