As many readers of this blog will know, I try to be as open and transparent about my affiliations and funding as I can reasonably be. This post is made within that spirit but is a little unusual as it records the fact that I have been expelled from membership of an organisation. As far as I can recall that's a personal first for me. Normally that's not something you want to shout about. But since I have been expelled for upholding my economic beliefs I am going to note the reasons on this occasion.
Patrick Allen, the chair and funder of the Progressive Economy Forum (PEF), has expelled me from membership of that group, of which I have been in membership since it began. I gather only one member of PEF overtly supported his decision, but Patrick Allen continued with his action nonetheless.
The dispute giving rise to my expulsion related to a chapter for a planned PEF book on economic policy after coronavirus. I was invited to write on tax policy, which I framed in a macroeconomic environment since that is what PEF concerns itself with.
As a consequence I offered an argument that might have been termed very mild in modern monetary theory terms. In response I was sent an edited chapter which reframed my chapter to effectively exclude MMT. The revision also deleted references to Stephanie Kelton's ‘The Deficit Myth', the inclusion of a reference to which was apparently unacceptable to the editors. I was also told I did not have the right to say that QE funding need not be repaid, since I was told that it must be, which would have required endorsement by me of an austerity narrative.
I refused the fait accompli that I was presented with, which was that if I wished to be included in the book then I must accept the edits that I did not agree with, and to cut a long story short Patrick Allen expelled me as a consequence of that refusal.
I realise now that I made a mistake in joining PEF. I thought it was a collective with a Council. It turned out it was an autocracy with the power to expel dissident opinion.
I am pleased to note that several other members and book chapter authors withdrew their chapters from the proposed book in support of my position. I am grateful to them.
I have no doubt that I will work with some members of PEF again. But in the meantime I think it only fair to point out that PEF is anything but a progressive economy forum. It is instead, in my opinion, dedicated to a profoundly neo-Keynesian view that implicitly maintains a deep austerity narrative. And I was not willing to compromise with that.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
There are links to this blog's glossary in the above post that explain technical terms used in it. Follow them for more explanations.
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Buy me a coffee!
Where does he think the money that QE replaced has gone to? And why does he think it will reappear if QE money is pulled out of the system.
Stephanie Kelton’s Deficit Myth too heretical to be spoken of? Just like some Labour activists I know, who proudly proclaim they never read anything they disagree with.
A group that doesn’t allow a range of ideas is never going to learn. And it is never going to be able to see where observation ends and dogmatic assertion begins. (an example of dogmatic assertion??)
I don’t always think you are right, Richard, but like Stephanie Kelton you are always worth reading.
(As an example of an off-the-wall economist who is always worth reading, can I recommend Blair Fix https://economicsfromthetopdown.com/2020/09/24/advice-for-an-aspiring-economist/)
As a retired scientist, I see so many interesting questions in economics, but the field is dominated by those who know the answer without looking at the problem.
I am not always right
I guarantee it
Authoritarian orthodoxy seems to be everywhere – no wonder we don’t seem to be able to get things done.
Good for you. I think you are right to make a public announcement about it.
Well said. I have had similar conversations when I was (purged) in Labour. Mcdonnell in particular and many Labour ‘economists’ are hostile to MMT or anything that strays away from ‘tax payers money’ narrative. They think the public would not understand and they would be labelled as tax and spend, which is ironic.
Richard – You were absolutely right not to sacrifice your principles, it would have undoubtedly come back to haunt you if you hadn’t taken a stand on this.
There are numerous well qualified economists on the PEF Council. How many of them recognise the autocracy you speak of? I think they should resign in solidarity!
Thanks for sharing. This confirms my personal experience that most economic academia is a closed talking shop, that refuses to countenance any change in view on money creation or, any matters pertaining to monetary issues,(other than perhaps setting interest rates). That this also goes on in our Universities which I find totally bewildering and very disconcerting, if University is not the place to ask questions, where is?
You would have run into disagreement with the PEF at some point by the looks, now known as the Regressive Economic Forum.
It’s great to know that other authors pulled their chapters from the proposed book.
It would be great if you could expand on the ‘cut a long story short’ section of the explanation as I would have thought resignation or withdrawal would have been options and if the view of events from Patrick Allen’s side could be given somewhere.
Well done though for sticking through to the point of being pushed.
You took a hit for MMT. Respect bro.
https://www.thisismoney.co.uk/money/news/article-8801909/Free-money-Bank-England-150bn-UK-debt-disappear.html
Written by Dan Atkinson for The Mail On Sunday (Published: 22:18, 3 October 2020 | UPDATED: 09:49, 4 October 2020)
I know the article is not from a well-known authority on Economics, but that’s the whole point.
Send Patrick the link and ask him if it is acceptable to quote from the article instead of referring to Stephanie Kelton’s ‘The Deficit Myth’,
‘Since March 2009, £745bn has been created out of thin air under the scheme’
‘Our research found that money printed under the Bank of England’s so-called quantitative easing (QE) programme has been used to cancel some of Britain’s £2trillion national debt.’
‘The result is that more than £150billion of national debt has effectively been paid off — at no cost — using money created by, and passed between, the UK’s two main financial authorities.’
‘The £150billion figure for the debt paid off using QE money is the equivalent of one and a half times the expected cost of the ‘moonshot’ programme to carry out ten million daily Covid-19 tests by next year. What is more, it is unlikely to be the final total for what amounts to cost-free funding.’
The last para of article (which I assume Patrick would endorse) shows that there is still lots of really hard work ahead.
‘So-called direct financing of public debt has been traditionally believed by the financial community to be the sort of activity engaged in by countries such as Zimbabwe — not advanced economies such as the UK.’
I think he over tries……but some of it is ok
I’m not sure how a forum can call itself ‘Progressive Economy’ and not include MMT and it’s advocates. It’s somewhat mind boggling. To me MMT effectively defines Progressive Economics. Although I have my own heresy of adding UBI into the mix – which annoys some in the MMT orthodoxy… 🙂
🙂
I owe you an email….
No problem, I know you’ve been busy Richard 🙂
Busier by far than this blog implies
If he thinks that QE and the national debt (£2 trillion ?) is to be “paid back”, where does he think the money will come from? Even if austerity produces “savings” of £50 billion a year (some hope!) it will take decades if not centuries – complete pie in the sky………..
True…
Hostility to MMT has reared its head following Bidden’s election.
For some reason Facebook had a post from a Real Estate Investor called George Gammon. A self made millionaire apparently. He’s made his money advising people how to protect their money.
He posted a 45 minute talk on MMT on 3rd November saying runaway inflation will result from its adoption. He’s pretty sure Stephanie Kelton will be offered a leading position in Biddens team.
I watched it all the way through but felt not knowledgeable enough to understand the details. Any thoughts would be appreciated.
I will comfortably say he is wrong
I suspect on both counts
https://on.ft.com/3neZSeT
The weekend article in the FT holds little hope for A Biden presidency.
It seems the US system is ever inventive in blocking real change.
Which given 70m voted for Trump is probably safest.
It seems to me the obvious challenge to be made to those that oppose MMT is ‘In that case where does money come from’ given that only about 3% of the money in use in the UK is in the form of cash
Doesnt seem right. There must be a way through – even if he doesnt agree with your take, surely a ‘balancing’ or ‘alternative’ view would suffice? Will Hutton, Danny Dorling, Wren Lewis, etc etc on their board are surely broad minded enough ….? OK they may not accept MMT – but surely we are trying to grope our way forward to a n understanding …the empirical fact of the 30 year Japan ‘debt’ and the miracle £750bn QE need some careful thought…..
I would offer myself as an intermediary ….to explore for any possible common ground……
All avenues were tried
Congratulations!
Prof. I assume you have a thick skin and can handle a sustained attack. You wouldn’t be were you are now philosophically if you had not gone against the received wisdom / the fairy tales of Money.
We may believe that an assault on freedom of expression is terrible when the PEF does it to you.
So we really should also believe that the silencing of any elected Potus Is equally terrible.
These doing the censoring have no legitimacy to do so.
Not the news personalities or their bosses.
I don’t watch TV, hence I am spared Trump and he’s detractors in the MSM. As I am saved from Bozo’s endless spaffings and the media’s uncritical adoration of him. Until they will drop him and instal the next puppet.
The Fascists are only getting warmed up.
Propaganda will intensify.
Censorship , banning and worse is ready to roll out.
Elections are fixed as a norm in most parts of the world by the same people. So when they do it at ‘home’ it is only new to us – most will never believe it!
They don’t want to believe they have been fooled all the time! Twain had something to say about that.
It starts by setting up a few straw-men to knockdown as decoys – some far right crazies or Icke and his lizards – that leads to wider mass purges of genuine leaders, thinkers and commentators and ultimately the masses who rally to such liberation philosophies.
You have obviously achieved enough exposure and reach with your Truths to become a danger. So the Deep State thugs will now target you to delegitimise you.
Standby to be accused of being a Conspiracy loon as you reveal the corruption at the heart of the Money Story. Watch as you are trolled on twitter and FB and worse.
I in my small way have been battling against the Covid counter-narrative strawmannery at the obviously controlled ‘Alt news’ site Off-G – who have simply ‘vanished’ me now!
A badge of honour!
As the hard BrexShit looms for just weeks away now and the DS uses the Covid lockdown to divert from that disaster fir the majority of us – the remnants of illusionary democracy, fair elections and Tax Payers Money are falling faster daily.
The DS are redoubling their efforts to reinforce the fury tale/lies, with their place men and women , to carry on with their corruption with the impunity they are long accustomed to.
Normally a war is conjured up to divert people. Covid has been used for such a purpose. With Biden/Harris actual boots on the ground become a lot more likely.
I am spreading links to your videos to as many as I know.
Keep up the great work.
Thanks DG
Well done …. and I am glad others have left that organisation in support of you and against this autocracy.
I am merely a little old lady of 71, but with a passion for economics ( and agriculture!) But I observe such a Huge difference since the 60s 70s and even 80s , of the ability of people in every field of interest, to look at ideas of others and deal with the differences amicaby , intellectually and reasonably. Everybody is so divided, does not bode well for the future .
I find many of these issues difficult
I was told I was a bully today for telling someone that an email was wrong
It was wrong, factually
But apparently that cannot be said
I find that as difficult as the stated divisions. That is passive aggressive bullying, in my opinion
I struggle to see how they can call themselves ‘Progressive’ if they exclude any consideration of MMT. Very disappointing.
Are the rest of the group really happy with this?
One is delighted with this
Most are deeply uncomfortable
Quite a number of chapters were withdrawn from the book in support
Sounds like PEF is actually the Regressive Economy Forum…. well done for speaking out, Richard. Maybe it’s time to start a genuinely progressive economic forum with like-minded economists who actually support a sensible macroeconomic policy stance.
Howard
Want to discuss this?
Richard