Archive for MMT

MMT Disputes

Regarding my recent review of Kelton’s MMT book, Transformer here in the comments writes: I just realized that the disconnect is that Bob is interpreting the phrase ‘how many dollars the federal government has added to people’s pockets without subtracting (taxing) them away’ in a way different to what (I think) Kelton intended. I believe […]

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My Exhaustive (Exhausting?) Review of Stephanie Kelton’s New MMT Book

Jeff Deist urged me to review this, and I’m glad he did. An excerpt: I’ve got good news and bad news. The good news is that Stephanie Kelton—economics professor at Stony Brook and advisor to the 2016 Bernie Sanders campaign—has written a book on modern monetary theory (MMT) that is very readable and will strike […]

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Bernie Jackson on a Flaw with MMT Analogies

Or rather, why Warren Mosler’s analogies don’t do what Mosler thinks. (For context see my interview with Warren.) Bernie Jackson emailed me (and said I could reproduce) the following: MMT’s referee & ticket analogies fail on their own terms and illustrate the MMT flaw! Bob, When the referee puts points on the board, the points […]

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Potpourri

==> The latest Contra Krugman tackles Modern Monetary Theory (MMT). ==> Wendy McElroy writes about privacy and the (modern) connection to cryptocurrencies. ==> A few people on Twitter were giving me a high-five for my old article on trade deficits and fiat currency. I re-read it and thought, “I agree. That *was* a good article.” […]

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Krugman: “Fiat Money…Is Backed By Men With Guns”

Wow, you really have to hand it to Paul Krugman. In the quick snippet below, he talks to Joe Weisenthal about Bitcoin. Krugman reiterates his surprise that it has lasted this long, but admits that it’s theoretically possible for an asset not backed by anything to chug along because of a self-fulfilling prophecy. However, Krugman […]

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Tom Woods Talks MMT With Me

Here. Two things: (1) I misspoke early in the interview, when I confused Abba Lerner with Oskar Lange. They both advanced the “market socialist” response to Mises during the celebrated Socialist Calculation Debate, but it was Lange (not Lerner) who wrote (somewhat tongue in cheek): Both as an expression of recognition for the great service […]

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Accounting Identities Versus Economic Theories

OK I’m going to crowdsource this one, because I’m guessing in the comments there will be two camps who will eventually reach the truth (at least in my mind). In a previous post I alluded to Brad DeLong bringing up a 2009 Fama essay on the impotence of stimulus spending. Upon seeing DeLong’s post, Krugman […]

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My Response to Mike Norman

This should settle things once and for all.

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