tag:blogger.com,1999:blog-8595404115121834255.post7234901487096677499..comments2024-03-28T03:24:05.678-04:00Comments on NAKED KEYNESIANISM: MMT and its Discontents: Again (Wonkish and Longish)Matias Vernengohttp://www.blogger.com/profile/09521604894748538215noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8595404115121834255.post-2981674567882383682020-08-12T16:39:58.084-04:002020-08-12T16:39:58.084-04:00No agreeing with Krugman. I thought it was pretty ...No agreeing with Krugman. I thought it was pretty clear.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-31224231363685217062020-08-12T16:39:21.759-04:002020-08-12T16:39:21.759-04:00Suponho que isso, mais câmbio flexível. O Lara-Res...Suponho que isso, mais câmbio flexível. O Lara-Resende é pouco claro pra mim.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-42589149913336658982020-08-12T16:38:23.120-04:002020-08-12T16:38:23.120-04:00I don't think really there's much connecti...I don't think really there's much connection. The problems of Venezuela are connected to the external constraint. I don't MMTers have thought about those issues.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-82197089612663244362020-08-12T16:37:01.173-04:002020-08-12T16:37:01.173-04:00I'm fundamentally in agreement is more of a po...I'm fundamentally in agreement is more of a political issue.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-41333184070432229012020-02-10T16:01:29.738-05:002020-02-10T16:01:29.738-05:00It isn't clear how much of the following passa...It isn't clear how much of the following passage is simply your summary of Krugman's views and how much of it you also accept:<br /><br />"So it's unclear what the fuss is all about. If it is because the Fed could, in the MMT story (not sure Functional Finance authors would say that), print money to finance the deficits and bring the economy back to full employment, then the concern might be that it would be inflationary, in a Monetarist sense that printing money might be the cause of inflation."<br /><br />In any case, here's Wray explicitly rejecting that position: <br /><br />"It is commonly believed that government faces a budget constraint according to which its spending must be “financed” by taxes, borrowing (bond sales), or “money creation”. Since many modern economies actually prohibit direct “money creation” by the government’s treasury, it is supposed that the last option is possible only through complicity of the central bank—which could buy the government’s bonds, and hence finance deficit spending by “printing money”.<br /><br />"Actually, in a floating rate regime, the government that issues the currency spends by crediting bank accounts. Tax payments result in debits to bank accounts. Deficit spending by government takes the form of net credits to bank accounts."<br /><br />http://neweconomicperspectives.org/category/the-federal-government-deficit/page/3Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-36062807582446706932019-03-12T22:42:23.809-04:002019-03-12T22:42:23.809-04:00Matias, a MMT seria as finanças funcionais com o J...Matias, a MMT seria as finanças funcionais com o JG? Há a necessidade do JG para evitar (hyper)inflação? <br /><br />Sobre o Lara-Resende, acho que ele está mais nas finanças funcionais antiga (Lerner) que na MMT em si. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-91375651824037651742019-03-11T00:25:13.272-04:002019-03-11T00:25:13.272-04:00How are MMT recommendations different from what Ve...How are MMT recommendations different from what Venezuela did in the last 15 years? Why would anyone expect a different outcome than rampant inflation? Why would anyone expect r-g to remain negative persistently?Irineu de Carvalho Filhohttps://www.blogger.com/profile/14102218468110108053noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-9912663653180838072019-03-10T09:32:54.813-04:002019-03-10T09:32:54.813-04:00And then there is Rogoff. But probably not worth s...And then there is Rogoff. But probably not worth spending any bits on that one.Steve Bannisterhttps://www.blogger.com/profile/14466785184416801339noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-3625037160766209352019-03-09T18:10:43.776-05:002019-03-09T18:10:43.776-05:00Matias, as all this blog, this is a very interesti...Matias, as all this blog, this is a very interesting post. Yet is it really right to say (such as some MMT involved in policy seem to point out) that the new spending agenda does not need to be funded with taxes at some point or another? Even when you issue your debt in your own currency, there is a limit on its overall level, isn't it? Moreover, as you point at the end, linking the spending and tax agenda seem politically right (and it may make sense in many other heterodox models), no? Diego Sánchez-Ancocheahttps://www.blogger.com/profile/03140856205281580682noreply@blogger.com