Great Leap Forward

MMT On the Web

In the past few days there have been a number of posts highlighting Modern Money Theory.

Here are two at Washington Post:

This story set off a number of interesting responses to/defenses of the MMT positions (to be clear, I think almost all the critiques are completely offbase; if you really want to see what the MMT positions are, go here ) :

In addition if you have a lot of spare time you can see two of my relatively recent presentations here:


7 Responses to “MMT On the Web”

barnardpFebruary 21st, 2012 at 6:01 am

The good thing about MMT is that it's right. As far as I can judge, it's theoretical and descriptive constructs are exceptionally sharp and true. MMTers should live up to their own standards and avoid venturing into uncharted territories. For example, you Randall Wray predicted, in no uncertain terms here in writing and with me in conversation, two events that never materialized: the Italian default "that we now know, it's going to be January" and the "collapse of the US economy in 6 months" (uttered back in july 2011). Conclusion: I personally think that MMT ought to avoid predicting the future. Why do that? It's so unscientific and in your case, Randall, it may lend ammunitions to those in the mainstream that already so clumsily criticize your excellent work. Let others slip into the business of premonitions. Even a cursory glance at the FT comments section makes one realize the staggering amount of fantastic announcements that are invariably proven spectacularly wrong even in a matter of hours. Those economists should stick to a more scientific observation of here and now, and of past events. Especially those that criticize MMT, because they get things spectacularly wrong even in the here and now and historical sides of this business. Yours Paolo

Stray__CatFebruary 21st, 2012 at 12:03 pm

Mr. Wray, the tinyurl links point to an Outlook Web application. I'd appreciate if you could correct them.

Thank you.

SergioFebruary 22nd, 2012 at 5:21 pm

Good Post Bernard. Just to clarify some of the issues you raised. Randall Wray is a Post Keynesian and as such he is aware that any prediction that he makes has radical uncertainty within it. He knows that he cannot predict the future, we can only look at the current circumstances and try to infer the possible outcome. As Keynes said: “When the facts change, I change my mind. What do you do, sir?” In the case of the Italian default you and I know that the Eurozone has taken some measures that are delaying the possible defaults. But if you read the media, you will find that Greece will most likely exit the Eurozone and the repercusions of this are yet to be known. The Eurozone could still collapse, and the US economy could suffer a severe slowdown because of this. We don't know, but it is a very possible outcome. Regards, Sergio