MtnMan

It would great to see you write a detailed post on Modern Monetary Theory. Someone I respect, David Stein, put out an interesting podcast on MMT. I didn't quite understand it all and would appreciate your views.

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No. 1-3
hmk
hmk

From my limited understanding of MMT is that its Keynesian economics on steroids. At least Keynes postulated that the govt could productively deploy capital during recessions to smooth out the severity of the downturn and repay the deficit spending with the surplus generated during an economic expansion. MMT postulates that this is irrelevant, just print print spend spend. No consequences. It basically justifies what we are currently doing, The only problem is that in theory there is no difference between theory and practice, but in practice there is. IT makes the false assumption the govt can deficit spend productively without any adverse effects from blatant money printing. LOL

Mish
Mish

Editor

I will indeed write more on MMT. Short story: Economic Fraud

truthseeker
truthseeker

Mish I think hopefully you would agree with me that the big sell off in the bond market today is related to the article on the editorial page of the WSJ on “Theory Behind Democratic Proposals Gets a Public Face” no coincidence......


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