economy Markets MMT

‘Miserable’ Myths

It's now widely (if begrudgingly) accepted that many developed nations are engaged in a version of Modern Monetary Theory. The pandemic forced the issue. For more than a decade, policymakers, economists, and analysts, persisted in the exceedingly ridiculous notion that all a central bank needs to do in order to escape charges of debt monetization is i) insert a middleman between itself and its bond-issuing sovereign, and ii) insist that at some undefined future date, the balance sheet expansion engendered by the purchases will be unwound. A central bank that buys trillions of its own government's debt from an intermediary is engaged in "accommodative monetary policy" which, while potentially risky for a laundry list of reasons, is academically acceptable and, if not exactly "embraced" by everyone steeped in the debate, won't get you ostracized or disinvited from dinner parties. Debt monetization, on the other hand, is taboo. Suggesting it should be implemented as public policy risks being brought up on charges of heresy in the court of budget rectitude, not to mention excommunicated from academic circles where the maintenance of orthodoxy is seen as important despite the fact tha
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5 comments on “‘Miserable’ Myths

  1. joesailboat says:

    Thank you for taking another attempt to educate the educated.
    The wisest people tell the most convincing untruths to themselves and it ain,t Ms. Kelton

  2. Tedshred says:

    The 1% will not go quietly…

  3. John3D says:

    Today’s ‘Let them eat cake’ is ‘Let them buy stocks’.

  4. Thank you for the education. I fear however until those 1% understand that the current path of policies are destined to reduce their standard of wealth there will be no change. Democracies were not formed to benefit the poor, but to benefit the already rich. That we seem to have forgotten this lesson in history is troubling.

  5. Could it be that all the issues facing Americans that Kelton listed in that last paragraph are result of corruption and misappropriation of resources and power, than the lack of paper with some numbers written on it?

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