Great, helpful piece about MMT's Significance

[oddlots]

Helped to tidy up my mental playpen:

http://www.nakedcapitalism.com/2011/...vereignty.html

On iPad so can't quote. Best to all over the holidays!

[ProdigyofZen]

Re: Great, helpful piece about MMT's Significance

don't like Cullen Roach...... weak..... very weak......

some parts of MMT are okay

But I will read this post at a later date.

[gwynedd1]

Re: Great, helpful piece about MMT's Significance

There is nothing good or bad about MMT. Its just how monetized government debt really works. Its the biggest reason why so few people understand basic macro economics today. The whole foundation of thought is broken without it. That a fiat currency is ideally most efficient is also beyond dispute. The dispute is over the somewhat fluctuating nature of human psychology. So the real argument is whether it would be allowed to work without special interests. My biggest complaint is if we intend to use such a system, the Fed system is among the worst since its complex and simply out of the bounds of democracy. A complex system of fiat currency benefiting the insiders is the worst of everything. If we are going to use it, it needs to be simple and open book.

[ProdigyofZen]

Re: Great, helpful piece about MMT's Significance

Wow just wow. That's a really small part you put in there about "the dispute is over fluctuating nature of human psychology" oh you mean the part where the government grows its debt exponentially but that's okay because deficits don't matter? Or that the Fed can just monetize the debt and it never really prints money?

We are on opposite sides of the pendulum gwynedd.

I still havent found anywhere on this site of what EJ thinks about MMT and the theory that the Fed doesn't print money.

[gwynedd1]

Re: Great, helpful piece about MMT's Significance

Wow just wow. That's a really small part you put in there about "the dispute is over fluctuating nature of human psychology" oh you mean the part where the government grows its debt exponentially but that's okay because deficits don't matter? Or that the Fed can just monetize the debt and it never really prints money?

We are on opposite sides of the pendulum gwynedd.

I still havent found anywhere on this site of what EJ thinks about MMT and the theory that the Fed doesn't print money.

What do you mean wow on opposite sides? That is like being on the opposite side of the sky being blue. Modern Money Theory is a description of how a fiat money system works, not how you work it. Most people don't even know how it works whether they think they agree with it or not. Its not political economy. And deficits matter about as much as discovering a huge gold mine in a gold standard or like the big silver discovery in Peru when silver was the money standard of Europe. .

As to the fluctuating nature of human psychology, I think you would find "Austrian" economics would differ vastly with different cultures. Some did not even believe the land was owned. You can find anything you like in the forested, mountainous region of New Guinea alone that had a culture by the square mile.

And of course the Fed prints money.

[DSpencer]

Re: Great, helpful piece about MMT's Significance

That a fiat currency is ideally most efficient is also beyond dispute.

I'm not sure how to take this statement. What do you mean by "ideally most efficient"?