I highly recommend extensive reading on this site. I am working on setting up all the assumptions in the form of equations of modern monetary theory. I believe, only then, can I build linguistic intuition. We tend to use examples from the past too freely, when the conditions for those ailments no longer exist, or, monetary policy is completely different and therefore our intution may no longer hold, e.g., Bretton Woods, Fractional Money, Bitcoin, Financialization of economies, Leverage... https://modernmoney.wordpress.com/
What can be said at all can be said clearly, and what we cannot talk about we must pass over in silence. - Tractatus Logico-Philosophicus (1922)
MMT has some pretty serious flaws. It really isn't a description of how the monetary system works. It is a description of Mosler's vision of how he wants it to work.
No doubt. I am not saying I am a proponent of it. I am saying that let's see how the language of the new Finance has changed, and if the examples of the past apply to the present. If you have an equally good or better website that tries to do that "modern talk", please feel free to post a link to it. Just like many of the morals of the bible don't apply today because 2000 years ago it could not have foreseen many of the scientific advances of today, my claim or more my goal is to see how much of the logic and economics that was applied in the 1800 and 1900 century apply to modern issues of economics and the well being of the citizen. I know that is not what an economist will tell you economics does,but I want to talk about economics as if people mattered, in the modern language of the subject.
Thanks for the link. To first order it makes sense and is a good explanation for my puzzle of why Japan's (and to a lesser extent the US's) huge government deficit does not post a significant problem so far. I am sure there are second order, third order... effects that complicate things but this is a good first step for me. Regards,
I have been thinking about MMT a lot lately. It also explained some Asia export driven economies where both Governments and private citizens are both net savers (think Singapore, Taiwan, South Korea, China...) and according to MMT their economy cannot grow unless they export. However, the devil is in the details. MMT would not work if one party get off the train. Private citizens can refuse to accept US $, foreigners can stop accepting US $ for trade.... When that happens the game might be over, then what?