An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Sunday, May 31, 2020
John Quiggin — Modern Monetary Theory: Neither modern, nor monetary, nor (mainly) theoretical?
John Quiggin reviews the MMT textbook, Macroeconomics by William Mitchell, Randall Wray and Martin Watts. More favorable than the title suggests, although with qualifications. Importantly, the review distinguishes academic MMT from popular MMT. Worth reading.
John Quiggin's Blog
Modern Monetary Theory: Neither modern, nor monetary, nor (mainly) theoretical?
John Quiggin | Professor and an Australian Research Council Laureate Fellow at the University of Queensland, and a member of the Board of the Climate Change Authority of the Australian Government
John Quiggin writes:
ReplyDeleteThere is also plenty of historical context, including discussion of the development of capitalism and of economic theory. The presentation is far from neutral, with a sympathetic treatment of a variety of heterodox schools of thought, and consistent criticism of neoclassical orthodoxy. But this is still preferable to the ahistorical treatment common in many introductory textbooks ...
A sympathetic treatment of a variety of heterodox schools of thought and consistent criticism of neoclassical orthodoxy, says Quiggin, makes the book's presentation far from neutral.
I can understand that he, as a neoclassical, would have preferred exactly the opposite, namely a treatment sympathetic of neoclassical orthodoxy and consistently critical of a variety of heterodox schools of economic thought.
Unfortunately, against what he apparently suggests, his preferences do not imply neutrality. He prefers a different non-neutrality, the one where what's true and what's false is at his discretion. That's what he calls neutrality.
But then, the way to avoid that problem of neutrality (i.e. the ahistorical treatment common in many introductory textbooks) is even worse.
It is difficult to please John Quiggin. I shiver to imagine his family life, his relationship with students or even him visiting a restaurant.
I haven't been back yet but I like to think I reconciled interactions with academic MMT and popular MMT. It'll be interesting to see when I return.
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