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That's a very contentious position. I understand that it's a commonly held view among MMT proponents, with whom I mostly agree, but I don't think they have paid
by mitthrowaway2 2y ago
That's a very contentious position. I understand that it's a commonly held view among MMT proponents, with whom I mostly agree, but I don't think they have paid enough attention to the importance of interest rates in deflating debt-fueled asset bubbles.
- dools 2y agoI don't know if I can say that I speak for MMT proponents generally but in his lecture on stabilising an unstable economy[1] Wray puts forward a series of very simple regulatory changes that would avoid those types of problems. In other words, regulatory oversight is a better tool for managing those types of bubbles than monetary policy. Mosler also talks about interest rate policy in his debate with Murphy[2] and has a long career in finance in both a public and private capacity. I don't think you could say he hasn't paid enough attention to anything to do with interest rates! [1] Lectures 6 & 7 in this series https://www.youtube.com/watch?v=SFf95BVx9Qw&list=PLYvSXI9SKGf2lIno6TI0r_PbLX_cpAwuu&index=7&t=39s https://www.youtube.com/watch?v=SFf95BVx9Qw&list=PLYvSXI9SKG... [2] https://www.youtube.com/watch?v=cUTLCDBONok&t=5347s https://www.youtube.com/watch?v=cUTLCDBONok&t=5347s