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

Not on the money

There is an interesting report in Business Insider of a survey of America’s economists. It states In the latest survey of 42 of America’s top economists by the Chicago Booth School of Business, not a single respondent agreed with the basic tenants [I think they meant tenets!] of Modern Monetary Theory (MMT): 36% of economists… Read more

Don’t use MMT except in an emergency?

For the first time that I am aware of MMT (Modern Monetary Theory) has been mentioned in the UK ‘mainstream’ rather than specialist press. David Smith, Economics correspondent of the ‘Sunday Times’, published an article in the paper on Sunday which is reproduced with free access on his own website. He states: Then there is… Read more