“*The Deficit Myth* and Modern Monetary Theory”
Attempted take-down of S. Kelton’s upcoming book by Tyler Cowen. This review has a lot of questionable points about MMT. (I’m waiting to order my copy of the book, so I can’t comment on it.) marginalrevolution.com/marginalrevolu…
Attempted take-down of S. Kelton’s upcoming book by Tyler Cowen. This review has a lot of questionable points about MMT. (I’m waiting to order my copy of the book, so I can’t comment on it.) marginalrevolution.com/marginalrevolu…
Just responding to a couple points. Conplaining that the Fed cannot control real interest rates is an example of soewing jargon without using one ounce of common sense. What’s gonna happen in response to loose fiscal policy - hyper deflation?
Another real/nominal point is that there is a real fiscal constraint, not nominal. Anyone who was paying attention to Functional Finance would pick up that the constraint is inflation – which is between nominal and real. The usual phrasing resembles “real constraints matter.”
Finally, he suggests taking a mainstream economic model and asking what MMTers would change. The answer is literally every equation in the model (unless it manages to get accounting identities correct).
But to discuss that, one would need to read the PK literature.
But to discuss that, one would need to read the PK literature.
