Friday, August 24, 2012

The Economist is Cartalist

Well not really, but they do cite the Cartalist approach of Charles Goodhart and wonder about it and the meaning for US dollar hegemony. They contrast Cartalism (or Chartalism) with the marginalist approach of Menger, but do not cite Georg Knapp or Abba Lerner or Keynes (of the Treatise on Money) as precursors of Goodhart, or any MMT author for that matter, following the tradition that the acceptable critiques of the mainstream have to come from within. Interestingly the specific take of the piece, the relation of Cartalism and dollar hegemony, has been the theme of our posts (here, here and here), and at least one paper. What are these guys reading?

PS: The classic book by Knapp on Chartalism is available here.

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