Anyway, just wanted to point out that when MMT-ers speak about “slack in the economy”, that’s a reference to the concept of so-called “idle resources”.
And it appears that their entire position rests on that concept, which we are familiar with because Keynesians believe in it.
If you consider a thought experiment where there are both zero “idle resources” as understood by MMT/Keynesians *and* where there is no money, I think even the MMT-ers would have to admit that printing money would not create wealth.
So, the essence of MMT is that printing money is entirely redistributive in nature. They are just trying to solve the old non-problem of so-called “idle resources”.
If you enjoy the feeling of amazement, looking at just how invisible central banks really are.
https://www.npr.org/2020/07/01/886036317/inflation-deflation
Don’t mention the money printing! They do have a momentary glancing mention of the federal reserve right at the end, without any analysis whatsoever.
Thanks for the audio version, it helped me.
Anyway, just wanted to point out that when MMT-ers speak about “slack in the economy”, that’s a reference to the concept of so-called “idle resources”.
And it appears that their entire position rests on that concept, which we are familiar with because Keynesians believe in it.
If you consider a thought experiment where there are both zero “idle resources” as understood by MMT/Keynesians *and* where there is no money, I think even the MMT-ers would have to admit that printing money would not create wealth.
So, the essence of MMT is that printing money is entirely redistributive in nature. They are just trying to solve the old non-problem of so-called “idle resources”.