Bill Mitchell — A response to Greg Mankiw – Part 3

On the MMT JG and the buffer stock approach to controlling inflation. Important. For some reason, most critics ignore this approach, which is central to the MMT approach to both macroeconomics and policy formulation and policy space.

Interestingly, both Paul Krugman and Greg Mankiw, who come from different ideological perspectives (left and right respectively), but share much of the conventional paradigm (New Keynesianism), have difficulty coming to grips with what MMT economists are saying, apparently because they are trying to view it in terms of their own approach and conceptual frame instead of the very different MMT approach and framing.

This demonstrates the value of a pluralist and historical approach to the study of economics in learning to appreciate different perspectives and approaches on their own terms before critiquing them on the basis of one's own position. To do otherwise is an elementary mistake.

Bill Mitchell – billy blog
A response to Greg Mankiw – Part 3
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia