MMT is real gold

The misleading title is because one reader has suggested (thank you, Damien) that I might respond to an ‘Economist’ article on MMT (Modern Monetary Theory). Which seems to go under various headings ‘Magic or logic?’ ‘Nutty or essential?’ depending on which Economist edition you are reading. Remarkably, it summarises MMT fairly well, whilst pointing out… Read more

Money is abstract not physical

There is an interesting piece from Joanna Montgomerie of King’s College London, on Storytelling about Debt in which she calls out the: …£1.64 trillion of private debt [86% of GDP]. This enormous stock of debt must be fed a steady stream of present-day income, flowing from households… and she shows that this private debt is almost… Read more

Thinking like China

There is a very interesting piece in the FT about China building a road in Montenegro, to link the Adriatic port of Bar to Serbia’s capital Belgrade. The Montenegrin government’s borrowing from China to finance the road’s cost, estimated at €1.3bn, has sent the country’s debt soaring from 63 per cent of gross domestic product… Read more

From Bloomberg to Positive Money nobody seems really to get it right

Bloomberg has offered  another piece on Modern Monetary Theory (MMT). This one is more complimentary and quite reasonably compares MMT with the seventeenth century scrip issue of Massachusetts, which they claim rather dubiously I’d have thought, to be the “first fiat currency in the Western World”. Personally I’d have thought that honour should go to… Read more

Modern Monetary Theory is logically inconsistent with a Job Guarantee

There is an interesting piece (which I was alerted to by Graham) from the Gower Initiative for Modern Money Studies about Universal Basic Income (UBI). The Gower Initiative, being ‘Modern Monetary Theory’ (MMT) advocates, believe of course, in the advantages of the Job Guarantee (JG), but whilst, whichever your preference, there is much to agree… Read more

Don’t build a ‘new economics’ without properly understanding the old

James Meadway, economic adviser to Shadow Chancellor John McDonnell, has written in the ourEconomy section of Open Democracy on the necessity for ‘building a new economics’: Some parts [of new economics] are half-remembered, and then placed together in peculiar (and often largely useless) new ways, like “Modern Monetary Theory” – a reconstruction of post-war Keynesianism… Read more