So, what is MMT?

Posted on January 20 2021

This was published via Bloomberg Markets yesterday, and I thought it worth sharing:

Just click the image to read the whole piece.

What is good is that it was published.

That it's useful is a bonus.

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11 Responses

  1. Pilgrim Slight Return says:
    January 20 2021 at 9:29 am

    Well, on a day of awful weather, this is a ray of sunshine.

  2. John S Warren says:
    January 20 2021 at 9:32 am

    Looks interesting, but cannot read it properly from the screenshot; is there another way you could present this?

    • Richard Murphy says:
      January 20 2021 at 9:57 am

      You have to open the tweet by tapping on it and then you can read it all

    • Contrary says:
      January 20 2021 at 8:10 pm

      John,

      Tiny text is one of my pet-hates – people think the digital age means they should cram in as many words as possible into the smallest space they can instead of considering readability. Anyway – I haven’t looked at it myself, but you should be able to save it to whatever device you are using, assuming it’s a jpeg or a png file – either right-click with a mouse (save as etc), or hold finger on it for a few seconds & you should get a choice to save on a touch screen. Once you’ve saved the file to your device you should be able to zoom in and out as usual on that file (if you can find it) – the resolution is likely to be crap though, so it might not help, but it’s always worth a try I find.

  3. Reefer Lenistahl says:
    January 20 2021 at 10:20 am

    I note that the article implies that MMT is neutral on whether deficits or surpluses should be run. It is described as consistent with the Clinton surplus years. I guess that we can also say the early years of Lutz von Krosigk qualify.
    Until his boss wanted some resources not available in the country’s own currency.

    • Neill says:
      January 20 2021 at 12:22 pm

      MMT is not a prescription, it’s a description, of of how government finances actually work.
      Once you understand how it works, there are a number off policy approaches you may want to pursue, not all of them good.

  4. Graham Hewitt says:
    January 20 2021 at 2:32 pm

    What’s the difference between “aggressive deficit spending” and “monetary financing”?