@ChrisMayLA6
May we have a review of Modern Monetary Theory?
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Thank you for your insightful posts.
@ChrisMayLA6
Enjoy the occasional exchange.
Exercises my 78 y/o brain, apart from my language-learning twice-daily.
@ChrisMayLA6
May we have a review of Modern Monetary Theory?
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Well, difficult with my instance's character limit, but overall I'm highly supportive - more so in the analysis than the policy prescription(s), perhaps; for the latter I remain more Keynesian.
The central point about money being trust & credit was a whole lecture's worth on my heterodox economics course (before retirement).
I'm an analytical pluralist but MMT is as near as would get to something like a unitary theory.
Hope that serves as some sort of 'review'
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@ChrisMayLA6
That's about the size requested. One one hand, the state is central to money - printing and taxing; OTOH banks create money by loaning more than they have in deposits, within state limits on the multiplier.
Your patch, and I'm sure it makes sense to you.
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Actually, my reading of MMT's analysis is that the state doesn't have the ability to limit the multiplier of bank credit (which is out of control) and why the policy prescription is much tighter state control of money creation - what most economists don't recognise (or perhaps wilfully ignore) - as per Steve Keen's analysis - is the ability of banks to produce 'new' money (qua credit), only limited by the ability to find counter parties who will to take out loans.
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@ChrisMayLA6
And limited by the borrower being able to convince the bank that they won't default. I'm assuming bank loans officers are salarymen?
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@TCatInReality @ChrisMayLA6 Same same from me for both the good Chris and TC.
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@leftyknowitall @TCatInReality
Thanks, really appreciated
Thanks for the kind words, really appreciated - always enjoy your posts & replies too.... have a great rest of the day
@ChrisMayLA6 Everyone loves a comedy typo. 👍