Simon Hobeck
Is there anyone here who knows about Modern Monetary Theory (MMT)?
I like the arguments in favour but I am curious why it hasn't been tried elsewhere. Why haven't Cuba or some other country with sovereign currency used this tool? Essentially, if its so great why is no one using it? (Or maybe they are and I just don't know).
#mmt #modern_monetary_theory
Dec 7 at 1:55pmWeb
Show threadJim Patterson 🇨🇦Dec 7

@Shobeck Warren Mosler has a good web site on it.
I suspect the reason it hasn't gained traction in major economies is because it's a threat to the financial sector, which would lose leverage with governments if they were not forced to borrow money rather than simply "print" it.
Cuba's not really a good example as it's a communist economy - many economic sectors are under government control.

https://moslereconomics.com/2011/08/04/mmt-history-and-overview/
#economics #MMT

MMT history and overview - Mosler Economics / Modern Monetary Theory

Excellent post from Johnsville: Modern Monetary Theory (MMT) in a Nutshell A rampaging mutant macroeconomic theory called Modern Monetary Theory, or MMT for short, is kicking keisters and smacking down conventional wisdom in economic circles these days. This is because … Continue reading →

Mosler Economics / Modern Monetary Theory
Show threadSimon HobeckDec 7
@SheamusPatt thanks, I will have a read. Maybe Cuba is a bad example then - maybe a small country in Africa or South America that does not yet have a heavily established financial system would be a better example.
Show threadJim Patterson 🇨🇦Dec 7

@Shobeck The actual reason, though, may be something you never heard talk about, which is that many currency-issuing economies gave up that ability (essential to MMT), agreeing to borrow from private banks when they were in deficit. A group in Canada called COMER challenged the government on this, but their challenge was denied. There's a good description here (and lots more info on their website).

The banks seemed okay issuing currency for Quantitative Easing during financial crises as in 2008, when they were the recipients, but directly investing new money into the economy was still a no-no.

https://comer.org/news/money-matters-comer-v-canada/

#MMT #cdnpoli

Money Matters — COMER v, Canada

By Judy Kennedy The great challenge of our time is to wrest control of our lives from Big Money, beginning with the control of our national finance. Our forefathers did just that 80 years ago during the Great Depression when, in 1935, they established the central bank, the Bank of Canada (the Bank), responsible to...

Comer
Show threadKaty SwainDec 8

@Shobeck #MMT isn't a policy program you "try". It's a way of understanding the way that money and the financial system really work. Once you understand it, you recognise that a whole lot of policy options you'd previously considered impossible are perfectly possible.

You only use MMT when developing public policy the same sense that you might use Newton's laws of motion when playing snooker. It'll help you understand what you're doing and hopefully stop you making dreadful blunders.

Show threadSolar🌄GardenFeb 1

@Shobeck from browsing the #mmt tag, I found this which seems to address your OP question. Not yet read but RJM is usually a good read

https://mastodon.social/@iamlayer8/115923143029701180

Show threadSimon HobeckFeb 1
@wavesculptor thanks, ill have a watch. I had done a cursory search before posting and this piece from RJM was published after that.
I hope it satisfies my curiosity.
Show threadSimon HobeckFeb 1
@wavesculptor I've now watched the video.
I guess my original question was poorly worded. Maybe its better to ask "Is there any where that approaches policy whilst accepting MMT?".
So a place where they realised its OK to generate government debt as it benefits the private sector and can generate pubilc debt for public works.
I think my general point is still valid - If MMT is so good and accurate, why are so few taking advantages of the potential benefits?
Show threadHeinrichsgeistFeb 3

@Shobeck @wavesculptor

#mmt contradicts neoclassical economics in that in any case high national debt will be a burden for future generations (without providing evidence). Since neoclassical economics dominates the textbooks and simply ignores counterevidence these kind of myths hold and dominate the minds of economists worldwide.

Japan is an example that values a vivid economy more than national debt count and ignores textbooks warnings. USA similar (but with special situation of owning the global reserve currency).