0/14 I never really understood the concept of a "buffer stock" (gold, wheat, unemployment, employment, etc). Why is it necessary? How does it work? What are the mechanisms at play? A very central concept in MMT analytical frameworks... from @debaterinchief @debaterinchief 1/14 Let’s start with Sam’s thread: buff.ly/4f0Wkbi especially this post: buff.ly/4eXcHW5 🧵

TAXES

In the MMT framework, taxes serve several key purposes, but it's important to note that they are not primarily about raising revenue to fund government spending, as is often assumed in conventional economic thinking. 1/20 Firstly, taxes help to create a demand for the currency. Since the government requires taxes to be paid in the currency it issues, this ensures that people need to obtain and use that currency. This is a foundational aspect of MMT.

My new piece explains how Modern Monetary Theory (#MMT) has a strong track record of accurate economic predictions and insights. 🧵
@stephaniekelton @StephanieKelton MMT correctly warned that countries borrowing in foreign currencies were vulnerable - proven right by the 2008 Euro crisis. /2
@stevenhailaus

The Nature of Money 🧵

Understanding the nature of money is a critical starting point for comprehending #MMT. Money is not a physical commodity with intrinsic value. It is a legal and social construct. /1 This means that money's value and utility are derived from the legal frameworks and social agreements within a society. /2

He has BLOCKED me but @profholden once asked for a “formal theory” of MMT. Well here it is.

https://twitter.com/SamHLevey/status/1433791554896998402

The model examines two claims of Modern Monetary Theory: 1) The government determines the price level through the prices it pays when it spends. 2) Deficient demand results when the government does not supply enough currency to meet private demand. #MMT 🏛️💸

No we need to talk about access to & availability of resources as per your old colleague

https://twitter.com/Dan_Nahum/status/1052505288677314560?s=20&t=voPva_ootGVN8z5NmtyPEw

https://twitter.com/RDNS_TAI/status/1561128141287878656

I think the Nordic model is likely the correct model but not for accounting of revenue but for its broad based (sometimes progressive) VAT & inclusive social wage since it’s income tax scales are flatter than Australia’s.

Scott Ferguson is an MMTer, so next up we have Geoff Hodgson Hodgson is friendly towards the State Theory of money but does not think that is the whole of it

Now I know who the non-heterodox economists in the book are, lets start with Can Heterodox Economics make a difference? by @PhilArmstrong58 again. I'll be making relational references to #MMT Victoria Chick makes the point that Post Keynesians should emphasise the spending comes first. This is completely #mmt consistent

I admire the goals of UBI advocates but when set low enough it's just a social security transfer payment system & when set high enough it runs into an inflationary index problem As for bullshit jobs, yes there are some, but I think we will disagree what they are. Most are there for our social protection.

MMT FAQs THREAD #MMT

1. What is Modern about Modern Monetary Theory? In this context the word “Modern” is used in the same context that Keynes has used it.

The State, therefore, comes in first of all as the authority of law which enforces the payment of the thing which corresponds to the name or description in the contracts.