Posted on 09/20/2011 8:53:43 AM PDT by PeterPrinciple
They only to pretend to believe it while it supports their idea of an all-powerful government. If the economics/economy were otherwise such that Keynes or MMT theory dictated shrinking government, then they would reject it entirely.
I think these MMT people really believe it but they are not really bright and have not looked at history very much. Hyperinflation has happened more than 100 times and MMT people don’t believe it is a real danger. I think I understand where they go wrong and have written up some stuff.
http://pair.offshore.ai/38yearcycle/#chartalism
http://pair.offshore.ai/38yearcycle/#mmthyperinflation
http://pair.offshore.ai/38yearcycle/#hyperinflation
MMT believers *want* hyper-inflation.
Won’t happen. Massive government overspending means deflation as private credit is destroyed.
Folks, MMT is a model. It’s a way of attempting to understand the complex interactions between inflation, employment, interest rates and deficit. It is not policy and it is certainly not policy in the current economy. In fact, just the opposite. We’re attempting to “cut” our way to prosperity in the mistaken belief that deficits matter during recessions. The failed belief in “expansionary austerity” has already caused a wide swath of economic destruction in Europe and we’re doing it here too.
MMT simply offers a different way to think about the relationship between various key variables in our complex, modern economy.
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