Modern Monetary Theory

Modern monetary theory questions: what do you want to ask?

Published by Anonymous (not verified) on Mon, 15/01/2018 - 2:30am in

I have been under some personal time pressure over the last few days because of extended family health issues. One of the things I have not done as a result is work on a the questions for a written Q& A on modern monetary theory with Warren Mosler, one of the founders of that economic school, which he has offered to do.

Then it occurred to me that I might as well open out the question setting process in advance. My aim for this is threefold:

a) To provide short answers to the theoretical basics - so short questions would also help;

b) To deal with the obvious issues that are raised in response to these basics;

c) To deal with the crass comments (from Venezuela / Zimbabwe / Weimar) onwards.

So fire away please. As many as you like. I will edit them though, and hope you will understand.

Answers from the MMTers

Published by Anonymous (not verified) on Thu, 11/01/2018 - 12:33pm in

Answers from the MMTers

By Stephanie Kelton and Randall Wray A few days ago, Jared Bernstein posed some Questions for the MMTers in order to gain a “better understanding [of our] arguments.” We appreciate his interest in our ideas and, especially, his direct appeal … Continue reading →

Answers from the MMTers


We Pay versus You Pay

Published by Anonymous (not verified) on Tue, 02/01/2018 - 9:16pm in

We Pay versus You Pay

The New Regulatory Regime of Modern Fiat Money By J.D. ALT I was momentarily taken aback to read in the Washington Post that a primary reason Donald Trump was elected president of the United States was because of a little … Continue reading →

We Pay versus You Pay


Defining the Tax Reform Battleground

Published by Anonymous (not verified) on Wed, 20/12/2017 - 9:11pm in

Defining the Tax Reform Battleground

By J.D. ALT The Republican tax reform will be criticized on many fronts. It is a battle of criticisms that will likely become as chaotic, ill-informed, and counter-productive as the tax reform process itself has been. This is because it … Continue reading →

Defining the Tax Reform Battleground


Millennial Agenda― (and how to pay for it!)

Published by Anonymous (not verified) on Mon, 11/12/2017 - 6:12am in

Millennial Agenda― (and how to pay for it!)

By J.D. ALT What follows is a to-do list for the next political power generation―the Millennials in whose hands the operation of America will begin soon, thankfully, to be grasped. The Boomer and GenX generations have succeeded in guiding America … Continue reading →

Millennial Agenda― (and how to pay for it!)


Monetary Mental Illness

Published by Anonymous (not verified) on Mon, 04/12/2017 - 5:33am in

Monetary Mental Illness

By J.D. ALT It is literally painful to watch our political leaders’ efforts to rethink and restructure how we are going levy taxes on ourselves as a collective society. It is like watching a family member struggling with mental illness: … Continue reading →

Monetary Mental Illness


Wouldn’t it be great if America had a fiat-money system?

Published by Anonymous (not verified) on Mon, 06/11/2017 - 10:06pm in

Wouldn’t it be great if America had a fiat-money system?

By J.D. ALT Think of how many of our seemingly intractable local and national problems could be solved if only America had its own sovereign fiat-money system! Unfortunately, most Americans can’t even think about that question because they’ve never heard … Continue reading →

Wouldn’t it be great if America had a fiat-money system?


Hy Minsky, Low Finance: Modern Money, Civil Rights, and Consumer Debt

Published by Anonymous (not verified) on Fri, 29/09/2017 - 9:41pm in

Hy Minsky, Low Finance: Modern Money, Civil Rights, and Consumer Debt

By Raúl Carrillo I delivered the remarks published below at the First International Conference on MMT on September 22nd, 2017. The panel, entitled “Modern Money, Courts, and Civil Rights — Against Legal Predation”, explored the interplay between the cycle of … Continue reading →

Hy Minsky, Low Finance: Modern Money, Civil Rights, and Consumer Debt


Italy’s Great Experiment

Published by Anonymous (not verified) on Wed, 27/09/2017 - 7:21pm in

Italy’s Great Experiment

By J.D. ALT Italy is experimenting with giving tax-cuts to its citizens in exchange for public services―such as pulling weeds and cutting grass. Wow. What an amazing idea! The government issues a tax credit, and uses it to pay a … Continue reading →

Italy’s Great Experiment


Thursday, 7 September 2017 - 6:21pm

Published by Matthew Davidson on Thu, 07/09/2017 - 6:21pm in

I've been meaning to go through the literature on every thrust and parry in the ongoing argument between proponents of a Job Guarantee and those of a Basic Income, and put together a thorough response. That's not going to happen in the next month or so, so in case I get hit by a bus, here's two paragraphs of where I stand (or don't stand) in the debate, lifted from a comment I just posted on Neil Wilson's blog:

Basic income vs. job guarantee is a false dichotomy that ill serves anybody who takes sides. There is undoubtably some overlap in that they both aim to reduce hardship and stimulate demand, but as far as I can see they’re mostly orthogonal in the range of problems they can potentially solve. Also they’re both programs that we already run, in the sense that we (in developed sovereign currency economies) already have a labour buffer stock program — unemployment — and a basic income, set at the level of zero.

I’m totally sold on (at least my understanding of) the job guarantee as a better implementation of a labour buffer stock, but I don’t think that “with a job guarantee in place, no matter what the particular circumstances may be, anywhere and forever, no level of basic income other than zero could be justifiable” is a defensible argument. And it runs counter to the general MMT stance of “these are the economic policy tools available; how you choose to use them is a political decision”.