The bottom line is that MMT’s aims are exemplary but an aggressive fiscal stance carries some risk. The doctrine’s theoretical synthesis adds little to the vintage ideas of Godley, Lerner, and Keynes. MMT revamps them with an expansionary thrust but is no striking intellectual synthesis. A better acronym would be VFT, or Vintage Fiscal Theory.Another "we knew it all along and it's no big deal" critique that cites no MMT economists. Lance Taylor does cite his own work, however, and that of MMT critic Tom Palley. Pseudo-scholarship based on personal opinion?
INET
Not So Modern Monetary Theory
Lance Taylor | Arnhold Professor of International Cooperation and Development, New School for Social Research
3 comments:
Thanks. He's worried "who is going to absorb all of this issuance". He apparently doesn't understand that the deficit spending itself creates the additional money which ultimately is available to purchase the securities.
Needs to take an Accounting course or two....
More self-congratulative behavior...
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