I was going to write about Jamaica today but this topic emerged that I thought I should deal with before I write about the home of reggae. In fact, some of the material is input into a reasoned discussion about Jamaica so it logically precedes it. With the increasing profile of Modern Monetary Theory (MMT), social media activists are wont to talk about MMT in various ways that, in many cases, do not bear resemblance to our work. But that doesn’t stop them claiming things about what we have written or said and then proceeding to say how this is a ‘big problem’ with MMT that they cannot accept. Then their own local commentators chime in reinforcing the point. It is obvious that the original writer hasn’t read our work or if they have they haven’t grasped it (including the nuance and subtlety) but still feels privileged to hold themselves out as experts to wax lyrical about the technical flaws in the said work. This gets amplified by the responses from the readership who have probably read even less – to the point that we end up with MMT being constructed as something ridiculous and foreign to its original. Sort of like start by saying you are discussing 2, call it 3 and say it equals 4. It is a problem because it confounds people and also gives those who oppose our work ways to further misrepresent it in the public debate....This is an important post with many links to Bill's previous posts on the subject.
There are two considerations that Bill omits specific mention of in this post that are covered by his extensive critique of neoliberalism throughout his work.
The first is the imposition of neocolonialism, e.g, through the IMF. While Bill mention the IMF by name, he doesn't not mention colonialism, although Fadhel Kaboub does in post that Bill cites. Neoliberalism, neo-imperialism and neocolonialism are primary factors affecting development economics especially, and international trade as well.
The second is the use of economic warfare to impose neoliberalism and its correlates, neo-imperialism and neocolonialism, e.g., through economic sanctions and political means. International trade cannot be separated entirely from social and political factors, even though the economic aspects can be discussed independently as an exercise. But in the real world, many extra-economic factors supervene in the case of geopolitics and geostrategy, with international economic and financial policy having been weaponized by the US in particular.
While these non-economic factors are not specifically the concern of MMT, understanding of MMT can be useful in developing policy to counter neoliberal attack and hybrid warfare.
Bill Mitchell – billy blog
There is no internal MMT rift on trade or development
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
See also
Bill Mitchell – billy blog
The mindless and myopic nature of neoliberalism
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
