Discover and read the best of Twitter Threads about #mmt

Most recents (24)

Slightly belatedly, this week GIMMS celebrate our 1st Anniversary 🥂🍾
A big thank you to all our followers and supporters who have contributed to our efforts over the last year to push for a broader awareness of #MMT From our London launch event last October.....
Where we announced the launch of our website, featuring our own #MMT factsheets with links and videos to the work of core academics, plus our searchable Zotero database of published papers.
We continue to enrich our site with our weekly #MMTLens blog.

gimms.org.uk/about/
Many thanks to our Advisory Board; Warren Mosler, Bill Mitchell, Randall Wray, Mathew Forstater, Stephanie Kelton, Pavlina Tcherneva, Fadhel Kaboub,Rohan Grey, Stephen Hail, Deborah Harrington & Jessica Ormerod for their advice, support and faith in our project.
Read 15 tweets
I attempted to engage the #MMT crowd on the technicality of how the policy fits within the confines of the current financial plumbing, specifically with respect to repo.

Ive also tried in the past with no success, but yesterday's Bloomberg article seemed to catch their
attention.

The responses I received were very revealing and confirmed my belief that they failed to consider the impact of such a policy on the current system.

It also revealed an army of zealots unwilling to engage on substance and who would rather tell me how stupid I am
to question the policy as it's so obviously correct that it's unassailable and asking questions about it is a sign of total ignorance.

My takeaway - the inevitability of MMT is on our doorstep and figuring out the tradable implications of unintended consequences will be
Read 4 tweets
A thread on what #MMT has to say re: small, non-hegemonic or so-called "developing" countries, a vital topic for any truly global & decolonial political economy. @FadhelKaboub has been working on this for decades. But recently many MMTers & fellow-travelers r now taking it on 1/x
Let's review MMT basics: fiscally speaking, any currency-issuing gov't with a floating exchange rate & productive infrastructures can afford to mobilize available persons & materials in order to serve communities & the planet. MMT terms this "monetary sovereignty." 2/x
According to MMT, monetary sovereignty is neither absolute, nor an all-or-nothing condition. Instead, monetary sovereignty comes in many qualities & degrees. Here is a good introductory talk on the topic by my colleague @NathanTankus at @law_uom. 3/x
Read 18 tweets
While we watch supposed Progressives lift up neoliberals as "acceptable" or "still progressive", we are left to wonder how many do not understand what a neoliberal even is. People like @EmmaVigeland have been steady calling people "sexist" for not supporting neoliberals. Why?
This is why we as a nation cannot make progress. It is called ignorance and gaslighting.

There is absolutely no excuse for either at this late hour.
For instance, a nation that creates it's own currency is not dependent nor should it try to sell "Green Energy" to "Finance" a Green New Deal

Only a neoliberal would attempt to make such a preposterous claim.
Read 7 tweets
@mcslfc68 @pinccushion @suziegeewizz Mark,first you have to realise2shocking facts:
1)we've been sold biggest&most effective lie ever told,relentlessly for@least40yrs(my lifetime)&in reality far longer
2)government money is INFINITE!*
Grab a brew,take a deep breath&stick with me for a moment (I'm not insane!)
THREAD
@mcslfc68 @pinccushion @suziegeewizz * infinite as long as you have sovereign currency,as we do in the UK,but the likes of poor Greece,in the €uroZone do not.

If cash is unlimited,then what's preventing unbridled spending?
Two things:
1) the necessary resources
2) inflation
@mcslfc68 @pinccushion @suziegeewizz So for 1)
*Johnson's 40 new hospitals announcement(turned out to be a lie anyway)was pure fantasy cos there ain't enough trained medical personnel to staff them.
*likewise if the government wish to give everyone a diamond,they're not limited by cash but availability of diamonds.
Read 18 tweets
Next panelist is @stf18, presentation titled “What’s with all the coMMoTion?” 😬😓 #MMTConf19
@stf18: printing money is not #MMT and by the way there's no such thing as "doing MMT". MMT informed policy is distinct from MM theories.
@stf18 is now presenting on his work at UMKC on employment statistics and those who "would take a job" . #MMTConf19
Read 6 tweets
Next up @iamdelmancoates on his journey to MMT and it's role in the Modern civil rights movement #MMTConf19
@iamdelmancoates: @ourmoneyus believes money created by the Government and financial institutions is a public utility and should be used for public purpose #MMTConf19
@iamdelmancoates: @ourmoneyus is focused on promoting MMT and the Federal Jobs Guarantee #MMTConf19
Read 15 tweets
Up now, @redheadmenace on "taxpayer identity" as a racialized identity.

#MMTConf19
.@redheadmenace: her book "racial taxation" shows how taxpayer identity led to educational segregation and unequal funding. #MMTConf19
.@redheadmenace: #MMT shows how it is politics, not how money works, that links taxing and spending #MMTConf19
Read 9 tweets
A) I couldn’t have imagined when I was introduced to the work of Thomas Kuhn and Michel Foucault in 1980 that I would actually experience a paradigm shift or an episteme change respectively. However, major change is now occurring in economics due to Modern Monetary Theory...
B) ..(MMT) - initially the work of Warren Mosler, aided by social media - made available by the internet innovation of Tim Berners-Lee. I wonder if it is a true paradigm shift though as it is the replacement of a body of contrived fantasy and knowingly dishonest information...
C) ..supported by a false infrastructure and camouflaging awards by a clear set of empirical observations, rational historical analysis and robust deductions. However, when enough people grasp the previously concealed, truthful observations and insights of MMT and demand the...
Read 5 tweets
If either party were the answer, or in any way truly better than the other then we would never have gotten @realDonaldTrump.

If any politician were the answer we would never have gotten Trump.

But we did get Trump. 1/
If you can answer the question of how we got here and are not personally uncomfortable then you haven’t really answered it. Because answering the question of how we got Trump is going to be uncomfortable.

We are the reason we got Trump. 2/
Every bad policy we didn’t pay attention to is why. Every corrupt official we tacitly accepted is why. Every centrist, incremental, ‘pragmatic’ solution that didn’t move the needle towards justice close enough is why we got Trump. 3/
Read 4 tweets
#MMT was easy for me to grasp bc just prior to learning what Modern Monetary Theory is, I was telling my son that money, the U.S. Dollar, is nothing more than an arbitrary representation of value--that labor and the real resources it uses are how real value is created. /1
Value, in and of itself, is nothing more than a human construct placed on real resources (i.e. things) and the amount of work it takes to cultivate, manipulate, or fashion those things into other things for other humans. /2
That value is driven by another human construct called demand (i.e. desire/need) by other humans (i.e. consumers) to have the things that have been given value.

In modern marketing, most of that desire is artificially driven by advertisers to create false scarcity and need. /3
Read 9 tweets
Think state balanced budget amendments are unjust, austere, & violent? Here's Jakob Feinig on the deliberately anti-democratic prohibition of state credit creation baked into the US Constitution. Check out our recent convo on @moneyontheleft. #MMT 1/3 mronline.org/2019/09/13/mon…
"There was a very clear elite project that put out documents to reorganize money less democratically by prohibiting state legislatures from emitting bills of credit. This is from Section 10, Article 1 of the Constitution." 2/3
"Instead, they put it in the hands of congress, which was deliberately constructed as an institution less open to non-elite pressure."
Read 3 tweets
"Raw Materials in the History of Economic Policy; or, Why List (the Protectionist) and Cobden (the Free Trader) Both Agreed on Free Trade in Corn" cambridge.org/core/books/vis…
Any correct heterodox theory of international trade must highlight the factors of decreasing vs increasing returns industries (primarily impact on domestic economy). #mmt
"Mercantilism and Economic Development:
Schumpeterian Dynamics, Institution Building and International
Benchmarking" google.com/url?sa=t&sourc…
Read 12 tweets
RAY DALIO: LA MMT È IL FUTURO DELLA POLITICA MONETARIA
Il controllo dell’inflazione dovrebbe essere affidato a una politica monetaria indipendente dalle richieste del governo: questo modello, da perfetto manuale di economia, potrebbe essere superato in un prossimo futuro.
È quanto sostiene il fondatore del maggiore Hedge Fund al mondo, Ray Dalio, in un post su LinkedIn nel quale indica la MMT non come una scuola di pensiero minore, bensì come qualcosa che potrebbe assomigliare al futuro comportamento dei policy-maker. linkedin.com/pulse/its-time…
Se per la teoria economica mainstream la banca centrale indipendente garantisce un comportamento più efficiente verso la stabilità dei prezzi, sottraendola alle esigenze elettorali dei governi, MMT ritiene che politica fiscale e monetaria dovrebbero agire in modo coordinato.
Read 48 tweets
1/ To me, this is the core of the FJG v UBI debate 👇. (I expect this will change, but these are my thoughts after two absolutely massive debates with UBIers that I've had in the past weeks.)

[#LearnMMT thread v.2]
2/ A major objection UBIers have to the FJG is that in the hands of our corrupt government and their for-profit bribers, the FJG would be outright slave labor. Here is a leading UBI advocate, evoking the Nazi holocaust.
3/ If not slave labor, then indentured servitude. Here’s 2020 candidate Andrew Yang (at 12min, 45sec).

Rubin: “As a small gov’t advocate, the FJG sounds like indentured servitude."
Yang: [laughs] "Yeah, why don’t we just give everyone grey jumpsuits?"

Read 28 tweets
1/ To me, this is the core of the FJG v UBI debate 👇. (I expect this will change, but here are my thoughts after two absolutely massive debates with UBIers that I've had in the past weeks.)

[#LearnMMT thread v.1]
2/ A check will undoubtedly help millions. My concern, a primary concerne of government and SOCIETY, is the collective. UBI will harm the collective, which in turn will harm citizens, starting of course with the most vulnerable.
3/ Most UBI supporters don't understand the fallacy of composition. They're so passionate abt the check being good for THEM, they don't look deeper to see that scaling that program up for the entire economy is extremely detrimental. en.wikipedia.org/wiki/Fallacy_o…
Read 19 tweets
#Tolstoy & #MMT connection

In 1886, great Russian novelist Leo Tolstoy published a non-fiction piece called 'What Then Must We Do?'.

There is a chapter on #money, which in effect sounds very much familiar and close to the #MMT motto -- #taxes-drive-money.

1/4
Tolstoy: "Any money is getting accepted between people only when they are forcefully demanded to be delivered by everybody. When every person needs money to redeem herself/himself from violence, only then money will obtain stable exchange value..."

2/4 #Tolstoy & #MMT connection
Tolstoy (cont'd): "... And what is demanded by the government [to be delivered by people as payment of taxes, fees, etc] obtains value, not what is convenient for exchange."

3/4 #Tolstoy & #MMT connection
Read 7 tweets
1/ @DougHenwood's [COUGH] critique of #MMT, and three responses by MMT economists and scholars.

[#LearnMMT THREAD]

Henwood's piece: jacobinmag.com/2019/02/modern…
2/ #MMT Economist @ptcherneva: "Henwood is tethered to the wealthy by an imaginary umbilical cord. Time to cut the cord. MMT has a profound emancipatory power. jacobinmag.com/2019/02/mmt-mo…
3/ #MMT scholars @videotroph, @nathanTankus, @RohanGrey, and @RaulACarrillo: "For Henwood, the left’s role is merely to argue extra hard for corporations and the wealthy to pay their 'fair share' of taxes." mronline.org/2019/05/02/mod…
Read 7 tweets
Prob the most significant Fed testimony of the decade, almost entirely due to the thoughtful questioning by @AOC, @RashidaTlaib & @AyannaPressley on the futility of the NAIRU, the need to support the real economy in recessions, & importance of an equitable public payments system.
Esp moving to hear @AOC challenge the Phillips Curve as a policy guide for Fed policy. While this was happening I was teaching my #MMT course in Spain--a country whose "NAIRU" the EC estimated to be 25% just a few yrs ago & in the double digits today
The rejection of the natural rate of unemployment/Nairu cannot come soon enough. Millions/100s of millions of livelihoods in the US and globally depend on it. J. Powell's response seemed to agree w/ @AOC and contradict his earlier statement from Jan '19.
Read 4 tweets
Thrilled to be on the op-ed page of the @FT! word limit was very tight (my 714 cut down to 615) so here follow a few explainers, expansions, further thoughts... 1/x
I was asked to write about mini-BOTS and assignats. Some would say they're complete opposites: assignats "backed" by land, #miniBOTs by nothing. But what gives money value isn't what's "behind" it but what's ahead--who will take it, for what 2/x
If #MiniBots are introduced, they will be circulate as a quasi-currency in parallel w euros. The anti-EU League Party is making vague #MMT anti #Austerity noises, but DO NOT BE FOOLED. A "parallel" voluntary money will not be good for ordinary people 3/x
Read 18 tweets
Some thoughts on this article by @ChrisGiles_ and Miles Johnson: amp.ft.com/content/28666e… @FT

I agree with @RobinBrooksIIF that there is a serious problem with how estimates of output gaps are constructed: 1/n
Output gaps can close not because actual output has recovered toward an unchanged potential trend, but because the path of potential has “bent down” toward the actual. 2/n
Among other reasons, this “bending down” may be happening also as an effect of the estimate of potential incorporating the consequences of past policy mistakes. 3/n
Read 19 tweets
1/ We must tax the rich, but it is **not possible** to use their money to “pay for” federal programs.

[#LearnMMT THREAD]

All federal spending is and has always been financed with created currency.
2/ This is true because of the realities of reserve accounting.
3/ Specifically, this is confirmed by research by @StephanieKelton. (Notice it says, "After carefully considering the complexities of reserve accounting...")
Read 9 tweets
1/ No one is happy with their health ‘insurance’ plan. No one. Those who say they are happy are confused. They conflate ‘happy with my plan’ with ‘happy with my doctors and hospitals in my plan’. But those are not the same things.
2/ When your job changes plans (as the majority do, every year, to save money), and you loose access to the same doctors and hospitals you had before, it’s not the ‘plan’ you liked, and now miss: it’s the doctors you liked - and now miss. That’s the issue. Do you see it, yet?
3/ For planned surgery, do you make sure that EVERY Dr and anesthesiologist that even looks at your chart takes your insurance? Are they ‘in network’? Do you still ‘like your plan’? And that’s work you must do BEFORE the ‘planned’ surgery. That doesn’t cover emergency surgeries.
Read 12 tweets
"Inflation the Boogeyman"

versus

Inflation in reality

[#LearnMMT THREAD v1]

WARNING: Just by **reading this thread** you (yes you) are causing a tidal wave of inflation that no plumber can ever fix.

Good job. 👍
2/ Those who do not understand #MMT, or do not want you to understand MMT, will say things like:

"Creating money causes inflation. Creating it beyond that causes hyperinflation."

So, creating one dollar 👉Inflation!

Daring to create that second dollar 👉 **hYpERinFlATiOn**!!!
3/ The idea that

“Creating money causes inflation."

is as ridiculous as saying

“Birth causes crime."

I mean, all criminals are born, amiright?
Read 23 tweets

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