Great Leap Forward

MMT on the Internet


1. Modern Monetary Theory vs. the Austrian School

First, Warren Mosler will be featured in a debate of MMT versus Austrians. Here are the details: Monday, June 3, 2013; 6:15pm until 9:15pm in CDT

Those in NYC can participate in Room 103, Jerome Greene Hall, Columbia Law School.

Others can view it live on the internet:

2. Democrazia Sovrana intervista L.Randall Wray (Wray does Italian Dubbed MMT)

I was interviewed by Cesare Sacchetti.

You can view my interview here:

7 Responses to “MMT on the Internet”

PZJune 3rd, 2013 at 9:19 am

Off-topic, but what is the MMT stance on neutrality of money, self correcting economy and all that?

Here is what Krugman recently said:

"to get across the notion of the self-correcting economy, the notion that in the long run, we may all be dead, but that we also have a tendency to return to full employment via price flexibility. Or to put it differently, you do want somehow to make clear the notion (which even fairly Keynesian guys like me share) that money is neutral in the long run. "

L. Randall Wray L. Randall WrayJune 3rd, 2013 at 12:08 pm

PZ there might be some economy somewhere in the universe in which money is neutral in the long run. Certainly not here on planet earth where capitalism dominates. What is the purpose of capitalist production? To make money. More precisely it is a matter of M-C-M’: start with money, purchase commodities to produce output, sell output for more money (profits). How could money “not matter”?

RobertMJune 4th, 2013 at 1:36 pm

That was an awesome debate. I loved how he would agree with the Austrian and then point out that everything the Austrian said is true….for a country on the gold standard !!!

PZJune 5th, 2013 at 11:27 pm

Thanks, This is one of those odd myths of mainstream economics that needs busting. Methapor that comes to mind is that could human body eventually adapt to a sitation where there is too little blood in the veins? No it does not. Even though it is not money that generates spending, but wealth. Like heart makes blood circulate, not the blood itself.

I asked Kruman how is neutrality of money working for developing countries, or european nations spending decades in eurosclerosis, if he ever reads his comments which is doubtful. The united states seems to be the well performing exception among countries, in a sense it has managed to keep aggregate demand high until recently. It is remarkable how much economic wisdom stems from the experience of one country only.

L. Randall Wray L. Randall WrayJune 8th, 2013 at 7:33 pm

olly: boy oh boy is koning’s argument silly. The “experiment” of a govt switching from accepting one currency to another has been tried many many times throughout history. The old currency stops being accepted fairly swiftly by the nongovt sector, too. Heck, it just happened in Euroland–you won’t find Italian lira circulating much in Italy! So Koning’s “brilliant” little “gotcha” is that the Central bank branch of govt still accepts the dollar! It is like saying the water company won’t take dollars but the electricity company still does. Would dollars still have value? Of course.

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