Tuesday, February 25, 2020

Bill Mitchell — Rounding off the Masterclass in London last weekend

Last Saturday, I held an MMT Masterclass or Teach-In in London. It was an experimental session because I wanted to see what level of difficulty people would find useful as we work on developing the pedagogy and materials for MMTed, which is intending to provide free teaching resources for those interested to learning Modern Monetary Theory (MMT) from first principles. Given the time constraints, I didn’t quite finish Module 1. So I thought I would provide the slides here with a written explanation of what I would have said so that you get the complete context and application of the concepts that we developed together during the class. So this blog post completes the lecture. Thanks to all those who attended and to those who have sent me the requested feedback. This will help us improve the material and presentation approach....
Bill Mitchell – billy blog
Rounding off the Masterclass in London last weekend
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

5 comments:

AXEC / E.K-H said...

Master of MMT ― Master of proto-scientific garbage
Comment on Bill Mitchell on ‘Rounding off the Masterclass in London last weekend’

Bill Mitchell tells his masterclass: “Viewed in a differ way, we have the accounting expression for the sectoral balances; (G – T) = (S – I) – (X – M + FNI)”

This equation is provably false because the balance of the business sector which is known as macroeconomic profit Q is missing. An economic approach that lacks the foundational magnitude profit is proto-scientific garbage.

Because the foundational macroeconomic relation is false the whole of MMT's analytical superstructure is false. Therefore, MMT's policy guidance has NO sound scientific foundations. Because of their absolute lack of scientific competence, MMTers are a public danger.

The correct sectoral balances equation reads (I−S)+(G−T)+(X−M)−Q=0.#1-#5

Egmont Kakarot-Handtke

#1 MMTers: too stupid for simple math
https://axecorg.blogspot.com/2020/02/mmters-too-stupid-for-simple-math.html

#2 #DrainTheScientificSwamp
https://axecorg.blogspot.com/2018/12/drainthescientificswamp.html

#3 The sectoral balances obfuscation: stupidity or corruption?
https://axecorg.blogspot.com/2019/10/the-sectoral-balances-obfuscation.html

#4 Wikipedia and the promotion of economists’ idiotism (II)
https://axecorg.blogspot.com/2018/07/wikipedia-and-promotion-of-economists.html

#5 Rectification of MMT macro accounting
https://axecorg.blogspot.com/2017/09/rectification-of-mmt-macro-accounting.html

#6 MMT is refuted on all counts, see cross-references
http://axecorg.blogspot.com/2017/07/mmt-cross-references.html

S400 said...

Any master classes at Stuttgart University Egmont? Or are you banned for life?

AXEC / E.K-H said...

S400

Bill Mitchell is doing good old Keynesian macro in his masterclass. Unfortunately, he has not realized to this day that

• there is NO such thing as equilibrium in economics,
• the correct sectoral balances equation reads (I−S)+(G−T)+(X−M)−(Q−Yd)=0 with Q as macroeconomic profit,
• that the Keynesian multiplier lacks the price mechanism.#1, #2

Bill Mitchell claims: “So we have moved beyond meagre accounting at this stage.” No, MMT got not even the elementary algebra that underlies macro accounting right.

Egmont Kakarot-Handtke

#1 Full employment through the price mechanism
https://axecorg.blogspot.com/2017/11/full-employment-through-price-mechanism.html

#2 Advancing to the correct multiplier
https://axecorg.blogspot.com/2017/08/advancing-to-correct-multiplier.html

S400 said...

I asked you two questions. You answered none.

AXEC / E.K-H said...

S400

You say: “I asked you two questions. You answered none.”

Here is the one answer to all your question: “Stop Recycling Dead Economic Theories, Start the Paradigm Shift”
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3544936

Egmont Kakarot-Handtke