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1/I was looking for a clear statement of the key takeaway from MMT. Particularly in the media stories, some written by S.K. herself, the story is so vague that it hardly makes sense to an economist. So, here's what S.K. says: "MMT shows that it makes no sense to... https://twitter.com/t0nyyates/status/1274344947085344768
2/ask, "How should the government finance its spending?" There is only one way to pay. All spending is already "money-financed." Soooo many people fail to understand this and end up saying that MMT *advocates* monetary-financing. That is wrong.” [end S.K. quote] So, first, MMT...
3/doesn't "show" anything. There's no science in it. No assumptions, no theory, no conclusions, no empirical work, except perhaps what you could construct yourself with a lot of effort and guesswork. It's definitely not science if this is some kind of post-modern exercise in...
4/reader participation. Second, it makes plenty of sense to say that it matters how government spending is financed, and it is wrong to say that all government spending is money-financed, in the sense of being financed by the issue of central bank liabilities. Government...
5/spending is financed through some combination of taxation and debt issue, and those debts are either the debts of the central bank or the fiscal authority. And we know a lot - though there are unanswered questions and debates - about the consequences of the choices about...
6/government financing. Financing choices matter - in very obvious ways sometimes. Third, it's a common tactic if you're trying to make the case that you have great ideas and that widely held views are trash to argue that your opponents are so stupid they can't understand you..
7/Well, S.K. we are not stupid, and we understand you perfectly. People have been peddling schlock since the dawn of time. Nothing interesting going on here.
