I've read quite a few books and papers on Modern Monetary Theory (MMT) recently and found it highly enlightening of how the economy actually works in practice. Curious to see if anyone of the NIS have been following/agree/disagree.
It essentially refutes orthodox economics and the montetarist idea that inflation is always linked to an oversupply of money, which has dominated economics for the last forty odd years since Thatcher claimed governments are no different economically from households and Reagan went fucking ham.
Politically, it can be used either way as it is primarily descriptive, although many MMT people advocate for certain policies to prevent inflation risks/full employment etc. MMT also destroys the the argument around debt for currency-issuing nations and the notion that taxpayers actually pay for anything.
The sheer fact we have an alternative economic theory emerging isn't really surprising considering the vacillation between the expansion of market forces and the subsequent counter-movement (unions etc), which is seemingly becoming faster and faster as globalisation and technology grow (Burawoy, pg. 40
https://rhuthmos.eu/spip.php?article1321)
For those unfamiliar there are three basic tenets set out in "The Deficit Myth" (recent book that really put MMT on display):
1. Currency-issuing nations have no financial constraints.
2. Nations have real constraints on resources and production capacity
3. A public deficit is, in effect. a surplus in the private sector.
Anyone else been following this stuff? What do you think?
