Guy before the pandemic on Oxford St ‘The end is nigh!’ Pandemic hits. ‘Now the debate is entirely on end is nigh terms. End is nigh won.’
Actually that analogy is not good enough because it does not capture the confusion of the normative with the positive.
Certainly there have been victories. Book contracts. Religious converts with many followers. Consultancies. Much £££. If that was the prize, then it was won.
You have to admire the singularity of purpose. The talent for communication. The dogged commitment to giving up actual empirical and theoretical enquiry to sustain the idea that the questions have been definitively answered.
Unless you are actually stupid, quelling those nagging doubts all the time would require monumental self control, like a Biblical literalist shutting out evidence for evolution.
You're also going to alienate yourself sufficiently that you won't be employable in most econ departments or publishable in their journals. That takes some bravery, saintly indifference, or confidence that you can generate £ through other means.

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More from @t0nyyates

20 Mar
Vaccines touch on a lot of economic policy questions. You could probably teach most of an econ course through the lens of vaccine policy.
For a start, public funding for free vaccines marks itself out from laissez faire. We could leave the private sector to do the research, manufacturing; and leave it up to the market to decide the price, and up to people whether they have it.
We decided not to, because we thought the market would produce vaccines too slowly, in too small quantities; + we made them free to boost take up which would otherwise factor in only personal health risk and not the wider externality of risks to others.
Read 51 tweets
20 Mar
This guy is at least covering up the nipple. 👍 Image
This is how to do it, lads. Wear a T shirt. T shirts cover your torso while leaving easy access to the upper arm, named for the 'T' shape that makes this possible. Image
Not like this. Image
Read 6 tweets
19 Mar
Yes and no. In the long run, to a first approximation, the issuing own currency bit is irrelevant to public finances. If you want low and stable inflation, you can't finance more than a fraction of a per cent of GDP through printing money.
Yes the BoE is currently buying those gilts, but if the inflation target requires it, and it probably will, most, probably all of the tranche since the pandemic will be reversed.
Although @andyverity is right that formal bankruptcy can be avoided by printing ever more currency, in practice, it probably would not choose this to rule it out, because the inflation that would result would be worse than default.
Read 7 tweets
19 Mar
Circulating this wider, as it is an echo of a comment I've seen before, that MMT is progressive and left wing, and conventional macro is right wing and regressive.
This is not so! The main substantive argument is about how the economy and the monetary/financial system works. This is a conversation about positive economics.
From the conclusions of that argument flow, once you have specified the objectives of policy, which you are free to do how you wish, addressing all the problems in political economy as you go in doing so, certain policy prescriptions.
Read 8 tweets
18 Mar
normative = deciding what you think would be best; positive = working out what is happening and why.
They are two separate social scientific activities. Observing that rates are zero and fiscal policy is pedal to the metal does not mean that policymakers agree with MMT's world view, or their prescriptions. In that sense Kelton is mixing the normative with the positive.
As for the 'there's no such thing as the natural rate' comment. This is very low grade twitter econ stuff. Maybe there is, maybe there isn't. In our best theories of inflation and macro, there is. A non economist with a one line tweet is not going to resolve it.
Read 4 tweets
17 Mar
Book idea: 400 pithy claims about monetary policy and public finance, all wrong, with me writing 'nope' in reply and no further comment.
I think I could pull this off.
'Keep interest rates at zero forever.' Nope.
Read 8 tweets

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