MMT was developed by accountants and lawyers. I think it is an excellent description of how the monetary system functions, but as a prescriptive paradigm--how we should approach the monetary functioning of the economy--it does seem that in it all that matters is that the numbers balance like numbers on an accountant's ledger. It seems to ignore the real-world implications of those numbers for human beings, such as raising taxes as a response to price inflation: I phrased it as a question, but government would have to run a surplus; otherwise, the money would be being recirculated through government, increasing total income and therefore total demand in the process.

Stephen Yearwood
Stephen Yearwood

Written by Stephen Yearwood

M.A. in political economy (money/distributive justice) "Please don't confront me with my failures/ I'm aware of them" from "These Days," as sung by Gregg Allman

Responses (1)