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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Friday, June 26, 2020
Debunking the myth of ‘helicopter money’ — Yeva Nersisyan and L. Randall Wray
This post is from last April. It is an excellent summary of contemporary issues, so here is again now these issues are coming to the fore owing to the publication of Stephanie Kelton's The Deficit Myth. It shows how most of the critiques aimed at MMT miss the mark since MMT doesn't hold those positions they attribute to it.
Japan Times
Debunking the myth of ‘helicopter money’
Yeva Nersisyan, associate professor of economics at Franklin & Marshall College, and L. Randall Wray is a professor of economics at Bard College and a senior scholar at the Levy Economics Institute
Originally published at Project Syndicate
These commentators have it all wrong. MMT does not support quantitative easing (QE), nor does it prescribe “helicopter drops,” for the simple reason that there is no such thing as a “helicopter money” alternative to financing a fiscal stimulus package. [bold added]
ReplyDeleteFor the simple reason that the non-bank private sector, except for mere (and grubby) coins and Central Bank Notes, may not even use their Nation's fiat but must instead use the private deposits of a government-privileged usury cartel, aka "the banks."
And the MMT School tenaciously ignores that injustice having no appreaication, it seems, of equal protection under the law when it comes to "money."