Stephanie Kelton (@deficitowl) tweets:
#mmt ignores private banks and can't disaggregate the priv sector. Oh, wait ... That's a straw man. Both here:levyinstitute.org/pubs/wp_645.pdfreferring to:
Quantitative Easing and Proposals for Reform of Monetary Policy Operations by Scott Fullwiler and L. Randall Wray
Levy Economics Institute of Bard College, Working Paper No. 645
Philip Pilkington (@pilkingtonphil) tweets:
@deficitowl @carney Not fair criticism. When there's net private sec def, there's almost always trouble. Norm=saving. http://pragcap.com/wp-content/uploads/2010/12/sb1.gif
Looks like the discussion has migrated to Twitter:
@pilkingtonphil @carney Don't need priv sect def 2 get in2 trouble. Falling priv sector surp. will do. Slide 6 slidesha.re/wf5hGd
@deficitowl @carney True. True. But net priv def is big trouble. Even w/ big foreign surplus. MMT=right to aggregate! bit.ly/wIZoIe
3 comments:
A MMR parable:
An MMR-er comes to the police station: "this man stole my wallet! I want to him to make up for my loss!".
Police officer: "There is no loss, you are talking like a silly silly MMT-er. Every MMR-er knows that at the time he took your wallet your shoes might have gone up in value. Talking about a net loss here is nonsense!".
Hey is there any way to update the design of this site? It's starting to look a bit ropey.
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