One difference between QE and MMT. Bernanke suggests issuing perpetual zero coupon bonds for the treasury to sell to central bank. https://www.zerohedge.com/news/2019-03-11/bianco-fed-has-given-mmt-proponents-ample-ammunition
We know that MMT stands for Modern Money Theory, But what is Modern Money Theory? This video by economist Steve Keen breaks MMT down into something we can get our teeth into in a very practical way. The remark coming from every sane, conventionally thinking person when first confronted with MMT is "Yikes, think of the Inflation that would create!" Well, it turns out the answer to everyone's first impression is, "Yes and No."
I personally am not so concerned about inflation as I am about the creation of two separate economies. I recently read an article on zerohedge which said that by and large QE was successful because they managed to recapitalize the system without inflation. True, but the end result was that it created a larger gap between the haves and the have nots. Dalio, someone who came from the middle class and "made it", seems to be very sensitive to this and has pointed it out on many occasions. So the question that needs to be answered, which the MMT people won't do, is: who gets the new money, why and what could be the worst end result? The answer is that the government gets the new money to spend on their own personal pet projects, cementing further crony capitalism, creating a further divide between the haves and the have nots. A real forward thinking economist (lol) would be thinking of using technology to solve the problem. Most people have bank accounts that can be electronically wired cash automatically. Why not start there? Answer: it doesn't make "the right" people rich.
I disagree. 1. QE is not MMT. How this mechanism for swelling reserve accounts and thus pushing down the wholesale price of money in coordination with issuance of Treasury debt got conflated with MMT is a mystery to me. 2. A widening wealth gap is a normal condition in capitalists economies due to the return on capital being greater than an economy's growth rate. QE is not helpful in this regard, but it isn't responsible for acceleration of the wealth gap. The acceleration is caused by compounding the result of adopting supply side-economics in the 1980s and it continual adoption by every Republican administration since. As keen points out in the video I posted, capitalist economies are demand limited not resource limited. Supply-side economics makes little sense in a capitalist economy now, or ever. 3. zerohedge is concerned with promoting an ideology.
I doubt you'll get an answer. Because you in effect asked what's the difference between a base ball bat and the Dirac equation. The only people that would bother to answer are in the State Hospital.
Permit me to rephrase: 1. My pet theory has similar mechanisms but is not as gross as the other one. 2. Republicans omg 3. Republicans suck
This is the real question no economist wants to touch because it puts their source of funding at risk. Economists serve the centralized state and have a cooperative relationship.