Tuesday, April 16, 2019

Houses and Holes — The pros and cons of MMT

Worthwhile article on MMT owing to the questions it poses. Not that MMT economists haven't addressed some of these questions. But I believe that some are still hanging.

It also observes that an MMT-based world run on functional finance would look quite different from the conventional world of "sound money," especially with a Green New Deal in the offing to address the emerging challenges of global inequality of distribution and the threat of climate change. What does this imply socially, politically, and economically?

It is also significant in that it attempts a systematic and comprehensive view of the challenges of making the switch from "business as usual," which is not working as people like Ray Dalio are point out, to something that is sustainable and suitable for emerging opportunities and challenges.

This is what a critique should look like. And being systematic, it's a good start for a comprehensive debate based on relatively neutral framing.

The pros and cons of MMT
Houses and Holes in Global Macro

1 comment:

Bob Roddis said...

Simply amazing. "Business as usual which is not working" is our present fiat funny money system. We don't have a gold standard, remember? The present day horrors we experience with fiat funny money are precisely the ones that were predicted and they are not problems with "capitalism".