Modern Money Theory (MMT) is Making Waves

MMT has moved to the next stage of the acceptance process,  from being ignored to being attacked.  The great Paul Krugmann has been devoting considerable column inches to discrediting the upstart that is pushing deficit doves like him off the  truly ‘progressive’ platform.  MMT’s great strengths is its links with traders and other financial non-academics who see the way the world works without the distorting lens of how it theoretically works.  I will not post Krugman’s posts as they are well linked in the rejoinders that are springing up in the growing list of pro MMT blogs.   Let the great debate begin…

Here is a clip of the Daily Kos response

The Modern Monetary Theory (MMT) approach to economics must be starting to make some waves, because today, Paul Krugman, followed his earlier attack on it and his debate with Jamie Galbraith and others last summer, with another swing at MMT. The debate last summer was an extensive one at Paul’s blog site at the New York Times, and, in addition, there were a number of posts at other sites replying to Paul. The debate was a classic in the developing conflict of views between the “deficit doves” (represented by Paul) and the “deficit owls” (represented by Jamie Galbraith and other MMT writers).

Given the earlier debate, you’d expect that Paul’s second try at MMT would reflect a bit of learning on his part, and also a characterization of the views of MMT practitioners that is a little more fair than he provided in his first attempt. This post will analyze Paul’s new attack and assess how much he’s learned. But first, I’ll review the earlier debate.

(link to full article)

Here is a clip form Tom Hicke’s response in Mike Norman Economics

Paul Krugman Marginalizes MMT

Paul Krugman does a great job of destroying a strawman and revealing his ignorance of MMT in Deficits and the Printing Press (Somewhat Wonkish) as many commentators point out to him. (It’s only “wonkish” because Prof. Krugman doesn’t get it.)

Cullen Roche responds with a post at Pragmatic Capitalism that sums it up nicely.

DEAR PAUL KRUGMAN, YOU DO NOT UNDERSTAND MMT

The good news is that Krugman mentions Modern Monetary Theory by name on the #1 economics blog on the net, and it is a truism of public relations and marketing that all publicity is good publicity — and it is even better when it is unsolicited and free. Thank you for the shout out, Prof. Krugman.