Indeed great conversation between @jonsindreu and #Macromusings' @DavidBeckworth on the recent/old savings glut - trade deficit - financial flows debate 1/11 https://twitter.com/DavidBeckworth/status/1290260987908505600

Podcast to be listened to in conjunction with this one feat. @M_C_Klein on its book with @michaelxpettis "Trade Wars Are Class Wars..." for a balanced view... 2/11 https://twitter.com/DavidBeckworth/status/1280134700120576005?s=19

This is also related to the recent twitter discussion between @NathanTankus, @JWMason1, @DanielaGabor, @Brad_Setser, @adam_tooze, @jonsindreu, @kalantzis, @JoMicheII, @GeneralTheorist
and others (not sure @TheStalwart jumped in) 3/11 https://twitter.com/VinceGW/status/1284019473201209344?s=19

I have to say I'm still digesting these interactions to see what to make of it. For sure I'm rejecting the loanable funds theory (at any horizon); in short I agree with what @tymoignee put here under MMT & is also PK basics 4/11 https://twitter.com/tymoignee/status/1247030495617024001?s=19

In an international context, this view tends to put more emphasis on domestic factors (consumption & investment behaviours, but also financial fragility, including in relation to deregulation...) than on external factors... 5/11

Still I thought it could be compatible with @Brad_Setser, @kalantzis (& @DanielaGabor ?), etc. view that the external financial conditions do affect the domestic environment, including for the US - in particular through the demand for $ assets (as in the euro area of course) 6/11

So while I agree with the broad framework of @jonsindreu which is close to @PMehrling money view and I think to @NathanTankus, @stf18 etc.' MMT, we also have to account properly for the impact of fin flows, depending on their motives 7/11

I think @jonsindreu and others wouldn't disagree with that, but for ex I thought that the idea that there was 0 effect on IR b/c the CB was controlling the whole YC farstretched... (not saying it can't but it has just not being controlling longer term IR all the time) 8/11

Still, as @jonsindreu mentioned in his podcast, it is true that it is important to uncover the "hidden" loanable funds theory that sometimes pops out here and there to make sure that we all stick to money endogeneity... 9/11

Interestingly - as K flows - this debate seems to go over traditional theoritical boundaries. @M_C_Klein mentions in his pod the savings glut views of K.Austin who published in JPKE and in the below piece pretends to break from neoclassical theory 10/11 http://www.paecon.net/PAEReview/issue90/AustinK90.pdf

Not convinced by this, but interesting to see how theories are used in both sides...
That's why for now, while I'm firmly convinced by PK/MMT endogenous money & reject loanable funds, I remain open to the different views on this trade & financial flows debate. 11/11