Thursday, July 9, 2020

What Is MMT? (Short Version) — Brian Romanchuk

My argument why MMT is awkward to grasp for people with already fixed views about economics is that we need to draw a distinction between two concepts of MMT: a narrow version (or core MMT), and a broad version. (This is my preferred wording, but is probably non-standard.) Most MMT primers on the internet focus on the definition of narrow MMT, while many of the interesting questions in economics (which show up in financial macro analysis) end up in broad MMT. It should come as no surprise that if you are interested in broad MMT, watching an online video about narrow MMT will leave a lot of questions unanswered. However, based on comments of MMT critics, this is exactly what many of them have done.
Finally, in the interest of brevity, I am presenting this overview from my perspective, and others may feel that there are better ways of presenting the material (or possibly that I am mis-characterising MMT). Chapter 4 gives a longer description of MMT and stays much closer to the source materials listed therein.
Bond Economics
Brian Romanchuk


Peter Pan said...

I'm surprised they watch any video on MMT before opining on MMT.

MMT ~ Orange Man = bad

NeilW said...

I can't seem to comment on Brian's blog, which is odd considering it is a Blogger like this one.

AXEC / E.K-H said...

What Is MMT? (Short Version)
Comment on Brian Romanchuk on ‘What Is MMT? (Short Version)’

MMT is the issuance of counterfeit currency in the form of deficit spending/money creation for the benefit of the one-percenters.

Genuine currency and counterfeit currency are indistinguishable because they originate from the same source: the FED. It all depends on whether additional fiat money is injected on the supply or the demand side.

MMTers are not scientists but a political agenda pushers. MMT policy is to the disadvantage of the ninety-nine-percenters. The counterfeiter steals from the rest of society via the price mechanism.

It is the ninety-nine-percenters who owes the public debt. And it is the one-percenters who owns the financial assets. Interest on public debt works like a regressive tax as long as the debt is rolled over.

Because #PublicDeficitIsPrivateProfit, MMT is the biggest redistribution program ever.

MMT is a political fraud.#1

Egmont Kakarot-Handtke

#1 More details

Brian Romanchuk said...

NeilW - no idea what is happening on comments on my site. My comments engine is different than this one, even though they are both Blogger (perhaps because this site is older). No non-spam comments is in the spam folder.

All I can suggest is doing an anonymous comment (might need to log out of your Google account).

The comments controls are extremely simple, but that means I don’t have a good grasp on the details of what is happening. Since I don’t want to spend time on site maintenance, that’s fine, but I’m losing legitimate comments.