Disturbing Rise of Modern Monetary Theory (MMT)

Re:Disturbing Rise of Modern Monetary Theory (MMT) by bilbo0s on Monday January 21, 2019 @03:12PM (#18963215)

I don't get the sense that the author believes the current system is perfect, or without flaws. The author simply points out some of the flaws, as the author perceives them, in MM Theory.

Is the current system brittle, and growing more so over time? Absolutely.

Is MM Theory the answer? I couldn't say. But part of ascertaining whether or not MM Theory can help us is taking a look at all of its wrinkles. (We should be taking a look at all of its benefits too. Again, just intellectual honesty, and necessary to the full analysis of the idea.)

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Re:Disturbing Rise of Modern Monetary Theory (MMT) by AnimalMuppet on Monday January 21, 2019 @04:13PM (#18963679)

> Is the current system brittle, and growing more so over time? Absolutely.

The current system is growing brittle along one axis.

After World War II, there was a cycle of recession and recovery, but each cycle had a higher level of inflation... until Reagan (or, if you prefer, Volcker). Since then, we've had the same cycle of recession and recovery, but each one with a lower level of inflation. But the problem has moved to a different axis - real wages.

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