MMT in a nutshell
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Playing Monopolis Monopoly: An inquiry into why we are making ourselves so miserable
By J. D. Alt Why does it seem like there isn’t enough money to pay for the things we really need?Promoted from the comments: I’m not sure how any non-MMT economists are interpreting the MMT view of “monopoly money” (and I don’t really care—there are blogs by MMT economists that can answer and authoritatively discuss that question rather easily for those interested, so I’m not quite clear on why there’s any interest in relying on secondary sources), but here’s what it actually means: 1. By virtue of naming the thing that settles a tax payment (i.e., reserve balances in the US, which provide the final settlement of tax payments; while the IRS and govt accept checks drawn on private bank accounts, these are not what is actually transferred to the Treasury’s account at the Fed), there is a demand created for this particular “thing.”
Mike Norman Economics: Scott Fullwiler on currency sovereign as "monopolist"
By Dan Kervick In Part One of this essay I defended the MMT view that the national government is the monopoly issuer of the currency in the US, and I attempted to clarify the actual economic status of that government currency with respect to the Fed’s conventional balance sheet accounting. In this concluding part of the essay I will further develop the contrast between the government’s role as currency issuer and the role of private sector households and firms – including commercial banks – as currency users . I will then make a few points about how the government supplies currency to the non-governmental sectors of the economy before concluding with a discussion of several topics that tend to engender resistance to the very idea that such a currency monopoly exists. The Role of Banks
The Public Money Monopoly (Pt. II) | | New Economic PerspectivesNew Economic Perspectives
By Dan Kervick Modern Monetary Theory (MMT) emphasizes the central role of governments in sovereign monetary systems. MMT co-developer Warren Mosler has described the US dollar system, for example, as a “simple public monopoly.”
The Public Money Monopoly (Pt. I) - New Economic PerspectivesNew Economic Perspectives
Reporting From Outside Party Lines
MEDIA ROOTS — Dr. Michael Hudson calls it “a financial grab of infrastructure” by banking and financial elites; some call it the new world order ; others use less provocative descriptors. This class warfare being waged by the world's ruling-class against the U.S. working-class has been described as a “ financial coup d’état ” by Catherine Austin Fitts and others. But make no mistake; the ruling-class is stripping the world’s working-class of rights, livelihood, and dignity. And one of the centrally relevant concepts is Modern Monetary Theory (MMT) .A rampaging mutant macroeconomic theory called Modern Monetary Theory , or MMT for short, is kicking keisters and smacking down conventional wisdom in economic circles these days. This is because an energized group of MMT economists, bloggers, and their loyal foot soldiers, lead by economists Warren Mosler , Bill Michell , and L. Randall Wray are swarming on the internet. New MMT disciples are hatching out everywhere. They are like a school of fresh-faced paramedics surrounding a gasping heart attack victim.
Modern Monetary Theory (MMT) in a Nutshell
The Center of the Universe » Blog Archive » MMT history and overview
A rampaging mutant macroeconomic theory called Modern Monetary Theory , or MMT for short, is kicking keisters and smacking down conventional wisdom in economic circles these days. This is because an energized group of MMT economists, bloggers, and their loyal foot soldiers, lead by economists Warren Mosler , Bill Michell , and L. Randall Wray are swarming on the internet. New MMT disciples are hatching out everywhere. They are like a school of fresh-faced paramedics surrounding a gasping heart attack victim. They seek to present their economic worldview as the definitive first aid for understanding and dealing with the critical issues of growth, unemployment, inflation, budget deficits, and national debt.
Much of the conventional economic wisdom prevailing in financial circles, largely subscribed to as a basis for governmental policy, and widely accepted by the media and the public, is based on incomplete analysis, contrafactual assumptions, and false analogy. For instance, encouragement to saving is advocated without attention to the fact that for most people encouraging saving is equivalent to discouraging consumption and reducing market demand, and a purchase by a consumer or a government is also income to vendors and suppliers, and government debt is also an asset. Equally fallacious are implications that what is possible or desirable for individuals one at a time will be equally possible or desirable for all who might wish to do so or for the economy as a whole.
Vickrey, William. 1996. 15 Fatal Fallacies of Financial Fundamentalism
Goes nicely with Warren Mosler's 7 Deadly Innocent Frauds & just want it noted it is not quite MMT as I have put it in my MMT in a nutshell category. by Nov 6
Debt, Deficits, and Modern Monetary Theory — An Interview with Bill Mitchell | Harvard International Review
Bill Mitchell is the Research Professor in Economics and the Director of the Centre of Full Employment and Equity at the University of Newcastle, Australia. The following is an edited transcript of the interview, conducted August 15, 2011. Thanks for joining us, Professor Mitchell. I wanted to talk with you today about Modern Monetary Theory (MMT)—the theoretical approach you’ve been integral in developing—and its relevance to current debates over public finances. I know you’ve been quite scathing of mainstream economic discourse.
Many people have drawn to my attention in recent weeks the evolution of the Modern Monetary Theory (MMT) Wikipedia entry and raised concern about the criticisms that are now on that site. I thought I better go and read the entry. I certainly have not added material to the site. Having said that I am happy that there is a page available. It seems that the criticisms cited are sourced to blogs by an Austrian Schooler, a graduate student blogger, and Brad DeLong.
MMT – an accounting-consistent, operationally-sound theoretical approach | Bill Mitchell – billy blog
WASHINGTON (MarketWatch) – Deficit hysteria is rising to fever pitch in Washington as the political jockeying over the budget begins in earnest. “Fiscal nightmare,” “buried under a mountain of debt,” “awash in red ink” – these are some of the colorful phrases being bandied about by politicians, pundits and even journalists ostensibly reporting facts. Most of them are winging it on a single undergraduate course in economics, if that, but they know they’re right because everybody agrees. Yet, if you look out the window, you don’t see any red ink or mountains of debt. The only nightmare is unemployment continuing near 10% and ongoing waves of foreclosures – neither of which is attributable to the federal deficit and neither of which will be fixed by budget cuts. /conga/story/misc/dc.html 199925
Deficit hysteria grips Washington - Darrell Delamaide's Political Capital - MarketWatch
John T. Harvey I have been a professional economist for almost 25 years, but never have I been more concerned about the state of our macroeconomy. Yet it's not so much the current rate of unemployment or GDP growth that has me scared to death; it's the so-called solutions being pursued in Washington.
The Big Danger In Cutting The Deficit - Forbes.com
Beyond Austerity | The Nation
When President Obama announced in December 2009 that “We don’t have enough public dollars to fill the hole of private dollars that was created as a consequence of the crisis,” the leader of the largest economy in the world told us that, despite having caused the worst economic crisis in eighty years, neoliberalism was still firmly in charge. The global economic crisis might suggest that the neoliberal promise—that markets can self-regulate and deliver sustained prosperity for all—was a lie. But that doesn’t seem to have registered with governments, which have, without exception, built their responses to the crisis on a series of myths—the same myths that caused the crisis.MDM, the key here is the MMT concept of vertical and horizontal in relation to money creation. This is sometimes called exogenous (outside) and endogenous (inside). When the government “spends,” the Treasury disburses the funds by crediting bank accounts.