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Pavlina R Tcherneva
@ptcherneva
, 4 tweets, 2 min read Read on Twitter
I spoke with @worldfinance about #MMT and appreciate how this piece tackled some misconceptions and overlooked aspects.
worldfinance.com/markets/modern…
Some additional points that we didn't get to discuss w/ the author. The article says: the #jobguarantee would be "hugely expensive". On the contrary. The enormous costs of unemployment & poverty is what's "hugely expensive". The #JobGuarantee controls & prevents these costs.
The #JG is anti-cyclical & by design it 'controls' spending on employment to be at the right level. It anchors wages at the bottom-another key anti-inflationary feature
Author correctly quotes me that MMT is NOT about large deficits, but suggests that would be the effect if people understood #MMT.
My reply: If they did, they'd favor spending control measures we've suggested that focus on inflation, real resource utiliz & don't tolerate unemplmt
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More from @ptcherneva see all

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Pavlina R Tcherneva
@ptcherneva
[thread]
Several thoughts on Brad DeLong’s mocking comments on the #JobGuarantee:
1. Abba Lerner was clear “functional finance is not priming the pump” (1951). If we wanted tight full employment, he argued, direct job creation in the form of public works may be necessary in order to attain and maintain full employment and price stability.
2. That’s what the #JobGuarantee does. It secures full employment, not by “deficit spending” on “low quality jobs”, but on directly employing the unemployed in public service jobs. Here is the difference:
Read 13 tweets
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Pavlina R Tcherneva
@ptcherneva
👇 why I ask my students to read Adam Smith. Few know about the richness of his work and why he is considered the father of neoclassocal AND heterodox econ schools alike
E.g. Adam Smith had:
-utility AND labor theory of value
-chapters on govt & importance of public works
-the famous invisible hand metaphor is mentioned only once in the Wealth of Nations but apart from markets it was meant to govern his Theory of MORAL Sentiments.
In fact Smith kept working on the Theory of Moral Sentiments all his life. Without ethics and morality, markets didn't work.
As Amartya Sen argued, for Smith Markets Never Stood Alone
ft.com/content/8f2829…
He explored his lost legacy here too:
nybooks.com/articles/2009/…
Read 4 tweets
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Pavlina R Tcherneva
@ptcherneva
Your wellbeing and healthcare crucified upon a cross of gold that doesn't even exist anymore.
#M4A #MMT
theintercept.com/2019/02/05/nan…
"Primus, like Pelosi, is a well-known deficit hawk, and both subscribe to the argument by the late Pete Peterson that the debt and deficit are among the gravest threats facing the country... 2 of Primus’s 5 objections to single payer...related to such alleged fiscal challenges."
The public is slowly waking up to the fact that its future and welfare are held hostage by a profoundly destructive ideology of fiscal rectitude. #LearnMMT #MMT
Read 3 tweets

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Values, believing, independent thinking, teamwork
@Bruno_Brunelli
Padre Gaël Giraud è già una star, giovane economista di grido, passato dal mondo delle banche e della finanza alla Compagnia di Gesù. Sacerdote, non ha smesso di ragionare sulle crisi passate e presenti, individuando una soluzione globale che investe l’economia e la politica,
a cui presta il suo impegno. E’ necessaria una Transizione ecologica, come spiega nel titolo del libro best seller, pubblicato in Italia dalla Emi. Non utopico ambientalismo, isterilito dall’ideologia, ma una proposta realizzabile che porti indipendenza dalle diverse troike,
cura del Creato, per noi e i nostri figli, pace, nella libertà dal sistema energetico che provoca le guerre e le tragedie umanitarie: sono i temi che hanno ispirato la Laudato Sì di papa Francesco.

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Alberto Nardelli
@AlbertoNardelli
NEW: The EU thinks that delaying Brexit makes sense only in three scenarios:

1) prepare for no deal
2) to ratify the withdrawal agreement
3) politics: an election or referendum

buzzfeed.com/albertonardell…
The assessment is contained in a memo which sets out the thinking at the highest level of the European Commission. EU27 ambassadors were briefed on its content today.

There is no easy solution. EU27 views are mixed. Ultimately, it will be a political decision for the 27
1) an extension beyond May is legally complicated
2) a long extension risks providing the UK with better terms than transition & damage functioning of EU
3) an election or a referendum would solve little
4) multiple short extensions would be the worst case scenario
Read 8 tweets
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Citizens' Media TV 🦉🌹
@citizensmediatv
1/ The Federal Job Guarantee (FJG) is not an “add on” to Modern Monetary Theory (#MMT), it is integral. As I understand it, the FJG is the only major policy prescription of MMT, which is otherwise a description of how our economy actually functions. Evidence 👇.
2/ #MMT core economist @billy_blog, at the nine-minute mark in this interview with @MMTpodcast hosted by @PatriciaNPino and @christreilly: “It’s not just an optional add-on policy preference, it’s a central core part of our theoretical structure." pileusmmt.libsyn.com/11-bill-mitche…
3/ Economist @ptcherneva, the primary economist behind the #MMT designed FJG. "@DougHenwood’s discussion of the Job Guarantee (JG) is a bit more charitable, probably because he believes (incorrectly) that the program is accessory to the MMT project." jacobinmag.com/2019/02/mmt-mo…
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Lukas Freund
@_LukasFreund_
#MMT has received a ton of attention on #econtwitter and beyond over the past few months, but my impression is that exchanges b/w MMT-folks are often not v productive. Following thread covers 4 "meta observations" trying to pinpoint issues and suggest more productive ways. 1/n
Summary: 1) terminological differences, 2) unstated premises, 3) attitudes/missing respectful treatment, and 4) a lack of mathematical models in the debate represent important limitations => formalization of debate seems crucial. 2/n
Prelim.: i) Premise: both sides of debate bring sth useful to the table, but present mode of discourse not conducive to synthesis. ii) Some notable exceptions, eg @dandolfa & @rohangrey exchange yesterday was excellent. iii) read "mainstream" in inverted commas throughout. 3/n
Read 17 tweets
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Citizens' Media TV
@citizensmediatv
Thread: This is what I would like @billy_blog’s feedback on.
I *thought* MMT was 100% descriptive, 0% prescriptive. Here are two slides from my MMT-101 lesson (video: ):
In other words, it was my understanding that MMT was explicitly non-political. That people can take the *knowledge* of MMT and use it to implement policies that are progressive, neoliberal, Republican, Libertarian, etc. – or not use the knowledge at all.
Read 38 tweets
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Sean Bryan
@seanpbryan
I had never heard of Modern Monetary Theory #MMT until this @planetmoney podcast. It piqued my interest and I started reading more about it. It has completely transformed the way I view govt. spending and what govt. should be doing.
npr.org/sections/money…
1/4
I'm still trying to understand a lot of this, but my big takeaways are:
1) Taxes do not fund federal govt. spending; the govt. creates money and then removes it through taxes. So, it is impossible for the federal govt. to run out of money; it cannot default.
2) A federal deficit means a private sector surplus, and a federal surplus means a private sector deficit (ignoring foreign trade). In order for you and me and all other private individuals and companies to have savings, there must be a govt. debt!
2/4
Read 5 tweets

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