There was an appeal for a list of MMT resources on this blog and on Twitter yesterday, to which I did not have time to respond. George Gordon did though and offered these, many of which I know. As he put it:
I like the following, in some sort of order (the first link is really, really good) —
https://ponderwall.com/index.php/2019/06/29/neoliberalism-fairytale-money-bank/
https://modernmoneybasics.com
https://www.youtube.com/watch?v=vryfJluFru4
https://theaimn.com/politicians-guide-question-going-pay/
https://vimeo.com/387886793
https://threadreaderapp.com/thread/1041042774278189056.html (very short)
https://gimms.org.uk/2019/02/10/uk-government-spending-taxation-bank-lending/ (longer but very clear)
http://moslereconomics.com/mandatory-readings/an-interview-with-the-chairman/
Thomas Edison and Henry Ford understood in 1921 —
http://prosperityuk.com/2000/09/thomas-edison-on-government-created-debt-free-money/
And who better to end with than James K Galbraith —
https://prospect.org/features/economists-got-wrong/
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I still like the joke about the scientist, engineer and economist, stuck on a desert island with a tin of beans and no tin opener.
I never did get the two graphs with straight lines / or \ that went along with the MPPS (save) MPPS (spend). Still it opened my mind to much daydreaming and positing that it wasn’t possible to know anything economic with much certainty.
Anyway, thanks for the resources – some light reading.
I guess the takeaway point (for me) is to continue to be inquisitive and to question even what you believe is true (probably especially what you believe).
I’ve just come to your blog because I started reading the nonsense Rafael Behr was spouting in the Guardian. As usual I muttered that no way could I continue reading this crap and immediately thought – I bet Richard has something to say about this. I’m sure you will. It’s so sad that The Guardian doesn’t seem to have an economics correspondent that knows anything g about MMT.
Once upon a time they engaged me
And they had a reposting right from here, which they used
And now they ignore emails
Readers here are not the only ones who think they have lost their way
Quite amazing really Guardian journalists print acres of newsprint telling the British what a fool Donald Trump is (half-witted I would say) yet completely oblivious to how foolish it is to ignore the strength and taxing power of the sovereign UK state in regard to utilising the availability of domestic resources. This is especially so when after ten years of Conservative government austerity cuts the NHS and associated public services appear ill-equipped to tackle the coronavirus pandemic. So much so the Guardian is even taking the trouble to currently run an article suggesting the UK will have the worst death rates from the virus of all European countries because of its lack of preparedness. Guardian journalists seem to be as incredibly half-witted or slow-witted as the Donald Trump they delight in ridiculing for not putting two and two together!
https://www.theguardian.com/world/2020/apr/07/uk-will-be-europes-worst-hit-by-coronavirus-study-predicts
From Helen: ” Guardian journalists seem to be as incredibly half-witted or slow-witted as the Donald Trump they delight in ridiculing for not putting two and two together!” Maybe I’m churlish but I strongly suspect this is a case of their salaries being dependent on that apparent inability to add two and two. It’s a faux-left paper these days. IMHO, of course 🙂
I regularly post links to your articles on CiF Richard.
I regularly refuse to give them any money.
🙂
The weird thing about the Guardian is their chief leader writer Randeep Ramesh very much gets MMT, which is why you occasionally obviously pro-MMT editorials (even if not always labelled as such), and was a guest speaker at the GIMMS opening (one of the sources cited by Richard above).
But Ramesh isn’t one of the economics writers – none of whom seem to grasp MMT – so the output in their economics section often outright contradicts their editorials. Only adds to the schizoid nature of the rag these days. I gave up a reading a year ago, and now only follow the odd link I see on social media.
Bless you ~ Richard – what the hell would we do without you? Thank you.
You’d have time on your hands
I have at last had my Eureka moment with MMT and now get it!!!!! Hallelujah!!!!
These links below were a real help to me. (courtesy of Helen Schofield)
http://neweconomicperspectives.org/2019/10/the-peoples-money-part-1.html
http://neweconomicperspectives.org/2019/10/the-peoples-money-part-2.html
http://neweconomicperspectives.org/2019/11/the-peoples-money-part-3.html
http://neweconomicperspectives.org/2019/12/the-peoples-money-part-4.html
Yay!!!
I’m also along-standing ‘admirer’ of J D Alt’s communication skills. As Helen says, his architectural mind-set works well in deconstructing then rebuilding macro in a structural way that makes logical sense and stand up (pun intended) to scrutiny. I’ve posted this link several times in the past but, for anyone who hasn’t yet seen it, maybe it will be a useful addition to the library of MMT knowledge : ‘The Millennials’ Money’ – https://www.youtube.com/watch?v=bHQCjFebIf8
I’m pleased I could be of help. These papers of Alt’s are the most straightforward I’ve come across to explain MMT.
I like J.D Alt’s work he puts a lot of effort into trying to simplify money creation as does Richard. Both Alt and Richard have to be forensic (highly analytical) in their respective professions architect and accountant. Alt needs to know why something will work before he incorporates it in a building and Richard needed to track the flows of money amongst other things in his profession.
I also particularly like Alt’s creative ability to split reserves into current and future in the papers you reference although I think of them as active and inactive. Of course, he does a magnificent job revealing the sleight of hand in the Market Fundamentalist’s conjuring trick with reserves.
I’d forgotten how good they were
The two game changers for me were when J. D. Alt explained that the Treasury only uses CBRs. I just assumed that when I pay tax, the broad money ends up in an HMRC account that the Treasury then spends.
The other big one was the WHY. Why was the system “designed” the way it was. It seemed so convoluted and unnecessary to me. (Still does, but I now understand why)
The last is that it was designed for the Gold Standard and it has never moved on
This brilliant post by MMT economist Steven Hail is priceless…
(Quoted from historian Elting Morison, concerning a study in the 1940s of ways to improve the performance of artillery dating from the turn of the century)
“(I)t was felt that the rapidity of fire could be increased. A time-motion expert was, therefore, called in to suggest ways to simplify the firing procedures. He watched one of the gun crews of five men at practice in the field for some time. Puzzled by certain aspects of the procedures, he took some slow-motion pictures of the soldiers performing the loading, aiming, and firing routines.
When he ran these pictures over once or twice, he noticed something that appeared odd to him. A moment before the firing, two members of the gun crew ceased all activity and came to attention for a three-second interval extending throughout the discharge of the gun. He summoned an old colonel of artillery, showed him the pictures, and pointed out this strange behavior. What, he asked the colonel, did it mean. The colonel, too, was puzzled. He asked to see the pictures again. ‘Ah,’ he said when the performance was over. ‘I have it. They are holding the horses.'”
This is just another thought process, so don’t feel that you have to answer my next question Richard.
Specially as you have lots more important things going on than feeding my curiosity.
Maybe some ideas from other contributors to the blog would help.
The question is.
If the whole economy was to be redesigned from scratch, what would the ideal system look like?
Would government be direct funded by BoE?
Would Government Bonds not exist?
Would CBRs and broad money merge into one?
Would private banks still exist? Would they be nationalised?
etc etc
I haven’t got time right now…
I am heading into a series of Zoom meetings and have blogged enough, maybe…
But over to others and I may join in later
I really hope your readers have found all the above links useful, although there is an obvious glaring omission – http://bilbo.economicoutlook.net/blog/
Bill Mitchell’s blog is undoubtedly the single largest collection of freely available work on MMT, and from one of the founders of MMT itself (who along with Randy Wray and Warren Mosler, has literally written the textbook on the subject).
If readers are interested in particularly good starting points for newbies I’ll be happy to recommend some, but it’s hard to think of a single important development in MMT (and wider macroeconomics) of the last 20 years that isn’t discussed in detail in one of his blogs.
The trouble is it is impenetrable, dull and often offensive in tone
And I am not the only one who has written about MMT who thinks so
I know the view is quite common
Sorry, but Bill really does not help MMT
In your opinion…
I’ve no intention of turning this into a personal slanging match, but suffice to say there’s also many, many people involved in MMT that would strongly disagree with that sentiment.
In any case, the internet is a big ol’ wide world for people to explore and choose what they do or don’t find helpful, but having any list of MMT resources without reference to Bill is highly remiss…
in my opinion.
I would not recommend it for anyone starting the subject, at all…
Let’s agree to differ
Patricio Pino and Christian Reilly’s MMT podcast is brilliant:
https://pileusmmt.libsyn.com/
Explains things in a really accessible way and usually features guest interviews with an exceelent array of guests.
They’re on to episode #45 now, but would heartily recommend any MMT newbie going back to the beginning and listening to the early episodes.
I am meant to be recording a new one with them very soon
Can anyone out there recommend any resources on how international currency exchange works? How MMT fits in with currencies and imports/exports.
The other thought that has now popped up is:
If tax is not used to fund government spending, what is the effect of tax havens/avoidance on a nations finances? I’m sure it’s obvious, but the sun is slowing my brain down and I can’t join up the dots!
I’ll try to do the last very soon
Basically, it’s about not being able to impose government fiscal policy, which is vital in an MMT world
If others could suggest the best on the former that would be good
Some of that logic is explained here https://www.cambridge.org/core/journals/social-policy-and-society/article/modern-monetary-theory-and-the-changing-role-of-tax-in-society/B7A8B0C7C80C8F7E38D20BE4F5099C83
Thanks Richard
Vinnie,
Beware simplistic arguments that a trade deficit = currency collapse.
Firstly, its simply a matter of logic that all nations are able to run a trade surplus all at the same (unless, that is, Mars is running a huge trade deficit with Earth!). Secondly, as a consequence of that same logic, if there are ‘surplus’ nations, then there must, by definition, be ‘deficit’ nations with which they trade. In fact it turns out that most of the world’s nations run a trade deficit (132 out of 194 nations*). This has been the case for many years and is structural. Think Germany & China huge net exports vs UK & US huge net imports.
Getting back to the proposition that trade deficit = currency collapse. We should have been witnessing a perpetual and prolonged state of collapse of most of the world’s currencies, but we don’t. Therefore the proposition is false.
* CIA 2017 statistics, ref. Wikipedia
PS I recommend Randy Wray and Steven Hail who are excellent on trade / current account. However Warren Mosler is brilliant at explaining this subject from an MMT perspective e.g. he covers it, along with other topics, in this talk on his “Soft Currency Economics”…
https://www.youtube.com/watch?v=Z1uWVj0YJ3M
Thanks for the link Stephen.
I’m going to have a stiff coffee and then dive in!