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Read Stephanie Kelton’s book “The Deficit Myth” for an elaboration on your questions. It’s a non-technical introduction to Modern Monetary Theory. Spoiler: you
by cgh 6y ago
Read Stephanie Kelton’s book “The Deficit Myth” for an elaboration on your questions. It’s a non-technical introduction to Modern Monetary Theory. Spoiler: you are correct, the rules are different for nations that control their sovereign currencies (eg the UK, Canada, Japan, the US, China, etc., but not EU countries).
- bubbleRefuge 6y agoThank you. I always try to call out a fellow MMT'ers. Amazing how far this has come. Mossler said he thought it would take a hundred years to get to the point that the framework could be used pro-actively to create policy on a grand scale. Although, small scale stuff did come to fruition such as the Bush stimulus checks of 2007(i think) which I believe was MMT inspired.
- bubbleRefuge 6y agoShe has truly brought MMT to the mainstream. She's why I supported Bernie Sanders ( and I am a former republican) who is clueless about MMT and thinks we have to tax the rich to fund Federal programs. Allot of people don't know this, but MMT intellectuals have said we don't need federal income tax at all. State taxes are enought to maintain demand for the currency. This from left leaning/progressive economists.
- RobertoG 6y agoI wish more people understood what is explained in that book. It's almost impossible to have a rational discussion about this subjects when most people (including the writer of the article, I'm afraid) don't understand the difference between private debt and the public debt of a country with its own currency.
- sdfin 6y agoRead it, but please also read it's critics[1] and form your own opinion knowing about the two sides. [1] https://mises.org/wire/review-stephanie-keltons-deficit-myth https://mises.org/wire/review-stephanie-keltons-deficit-myth
- stainforth 6y agoDo you have another source. I don't trust that site based on its other article headlines.
- sdfin 6y agoI read similar critics in other sites but right now I don't remember exactly where as to share the links. The arguments were similar. The article is balanced and well thought. You could search for other sites in the web, but I'd suggest you not to discard this one only for the headlines of other articles.
- hfsp 6y agoHave fun staying poor.
- Daho0n 6y agoWho? The US?
- hfsp 6y agoAnyone who subscribes to MMT, creating money out of thin air, or the gov providing for citizens through money printing.
- imtringued 6y agoWhat's the worst thing that can happen? Full employment and the subsequent rise in private industry and economic growth and 2% inflation? When you have a gold backed currency there is a "guarantee" that each dollar can be exchanged for physical gold. When you have a fiat currency it is backed by nothing, except the existence of an economy that exchanges your dollars for physical goods and services. If you can create money and spend it in a way that preserves this contract you unlock economic growth.
- hfsp 6y agoRead When Money Dies by Adam Fergusson. This is the worst thing that can happen. Having lived through hyperinflation, I do believe that printing trillions (+40% last 12 months, +75% since '09 crisis) has negative consequences. There is no free lunch.