3 ms·

This is part of what Modern Monetary Theory has been explaining but it's always hidden in the public discourse. The consequences of what money is in modern eco

This is part of what Modern Monetary Theory has been explaining but it's always hidden in the public discourse. The consequences of what money is in modern economies, are not well understood or accepted. I suspect that the possibilities that this open scare a lot of powerful people. If somebody want to dig further in the rabbit hole, I recommend: http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf http://moslereconomics.com/wp-content/powerpoints/7DIF.pdf (this one is a pdf) http://neweconomicperspectives.org/modern-monetary-theory-primer.html http://neweconomicperspectives.org/modern-monetary-theory-pr...

flurben 11y ago
MMT is simultaneously a) a "heterodox" theory that mainstream economists don't consider entirely legitimate, and b) precisely how central banks in the US and UK describe their own routine monetary operations. I still struggle to understand how and why these statements can both be true.
- RobertoG 11y ago
  Yes. I also find that funny. And MMT has another interesting property: when you take the time to learn a little, it makes a lot of sense. They have been always saying how money is really created, now the Bank of England confirm it, but we should keep believing the text books from the gold standard era I suppose.
  - bubbleRefuge 11y ago
    Its because unfortunately politicians and the financial press cannot touch it. Its too easy for the public to draw comparisons between household budget constraints and currency issuer budget constraints (which need not exist). FUD sells.
bubbleRefuge 11y ago
Warren Mosler once told a story about how he's presented MMT to politicians ( Joe Lieberman was one) who agreed with him, but felt MMT realities are to politically sensitive to do anything about now.
- RobertoG 11y ago
  New ideas always have it difficult. But it's possible to see some progress. There is now even a textbook for university-level macroeconomics students: http://www.amazon.com/Modern-Monetary-Theory-Practice-Introductory/dp/1530338794 http://www.amazon.com/Modern-Monetary-Theory-Practice-Introd...

flurben 11y ago

MMT is simultaneously a) a "heterodox" theory that mainstream economists don't consider entirely legitimate, and b) precisely how central banks in the US and UK describe their own routine monetary operations. I still struggle to understand how and why these statements can both be true.

RobertoG 11y ago
Yes. I also find that funny. And MMT has another interesting property: when you take the time to learn a little, it makes a lot of sense. They have been always saying how money is really created, now the Bank of England confirm it, but we should keep believing the text books from the gold standard era I suppose.
- bubbleRefuge 11y ago
  Its because unfortunately politicians and the financial press cannot touch it. Its too easy for the public to draw comparisons between household budget constraints and currency issuer budget constraints (which need not exist). FUD sells.

bubbleRefuge 11y ago

Warren Mosler once told a story about how he's presented MMT to politicians ( Joe Lieberman was one) who agreed with him, but felt MMT realities are to politically sensitive to do anything about now.

RobertoG 11y ago
New ideas always have it difficult. But it's possible to see some progress. There is now even a textbook for university-level macroeconomics students: http://www.amazon.com/Modern-Monetary-Theory-Practice-Introductory/dp/1530338794 http://www.amazon.com/Modern-Monetary-Theory-Practice-Introd...