Re:Unsolved problems in economics
by bryanlarsen on Tuesday May 17, 2022 @12:32PM
(#31413072)
That's Mosler's MMT, there are other MMT proposals which are closer to the path taken by the administration. Kelton's for example.
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Re:Unsolved problems in economics
by neilwilson on Wednesday May 18, 2022 @01:39AM
(#31419579)
It's the same thing with a different marketing emphasis. Although increasingly they appear to be heading down the same policy dead ends as Post Keynesianism, simply to try to appeal to the Democratic Party.
You won't find any MMT proposal that proposes changing taxes to control inflation, because that doesn't work any more than changing interest rates does. You don't want humans involved in the stabilisation system - it has to be done by the automatic stabilisers, and on the spend side.
Taxes are set based upon fiscal policy goals which are, or should be, indifferent to the business cycle.
The analysis within MMT comes from an understanding that we control inflation via a buffer stock of human labour, and that government sets the price of currency when it spends.