The economy is like an (enormous) electrical circuit with, crucially, non-linear elements. Mainstream macroeconomics models that poorly which we've seen well d

The economy is like an (enormous) electrical circuit with, crucially, non-linear elements. Mainstream macroeconomics models that poorly which we've seen well demonstrated over the last 10 yrs although there were earlier demonstrations, e.g. stagflation in the 1970's. MMT, while as the article indicates heavily politicized, adds, I think, some insights. For one, money is not exogenous. That is, it doesn't come only from the Fed, banks also in effect create money when they write new loans. Also, what are savings (not necessarily a question raised by MMT)? They're an accounting identity in mainstream macro and supposedly investment = savings. Too simple. Why is there a 'savings glut' in E Asia at the same time that investment in China is remarkably high? And so it goes. Some steps forward, how many back - don't know but the article does demonstrate just what a political football MMT has become - I'm sure AOC is great but I'm not sure she's an expert in economics. I'd like to see a better theory of non-linear dynamics in economics. The non-linear elements are basically feedbacks where feedbacks allow components of systems to adjust more quickly to changes elsewhere in the system. A forest fire (speaking metaphorically) clears an area of land? The first species to recolonize the land are those that get there quickest. You need to be quick when opportunity arises and feedbacks jumpstart you. To go back to the electrical circuit - have we even adequately characterized the components (resistor, capacitor, etc.) that go into making up an economic electrical circuit? Also as regards China. China accedes to the WTO in 1999 and only 8-9 yrs later (2007-2008) the circuit blows itself out. Add a huge new power source without compensations elsewhere in the circuit and it will likely fry itself and here we are more than 10 yrs later with the smoldering wreckage still visible. Although if you've come of age in the last 10 yrs, this might not be visible to you. An interesting thing to study is global capital flows - something like the electricity of the system. There was something somewhere where Joseph Stiglitz said: we need a better theory of finance. That is, we really don't know how this shit works.