Monday, April 15, 2019

Investment Perspectives — Modern Monetary Theory, and why you're about to hear a lot more about it


Most of the financial "professionals" writing on (against) MMT are clueless about both MMT and also the basics of finance in institutional arrangments. They think that the world is still on the gold standard, for example, likely because they strongly believe that it ought to be. But beyond that, also clueless about how the accounting works at the macro level.

A very few do understand MMT, however. Paul McCulley of Pimco and James Montier of GMO, for example.

Here is another voice to add to the list of those that actually get MMT and therefore finance.

Pass it on. There is also a link to download a PDF of the article.

QuayGlobal Investments
Investment Perspectives: Modern Monetary Theory, and why you're about to hear a lot more about it
Chris Bedingfield
Reposted at Live Wire

Here is an alternative viewpoint by an economist that is also a financial professional who actually cites MMT literature — but gets it wrong anyway.

Warren's Page
Modern Monetary Theory—A Critique
Warren L. Coats


2 comments:

Kaivey said...

I've just read the Chris Bedingfield article - awesome! He's a real convert.

Remember when I linked money to 'work done' (labour) or work promised (as a loan) and some people said that I had a very old fashioned idea of money by limiting it to the amount of work that can be done. But that is what the MMTers say as well.

"And while a country like Australia or the USA can never run out of its own currency, it can run out of labour, energy, food or water. Put another way, the real budget constraint is inflation."

Kaivey said...

Bill Mitchell is very socialist. Chris Bedingfield must be open minded to that too.