Dougald Lamont’s Substack
Clean Slate: New Ideas for Justice & Democracy
If Modern Monetary Theory is wrong, why is it so much better at predicting the economy - and economic disaster?
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If Modern Monetary Theory is wrong, why is it so much better at predicting the economy - and economic disaster?

The reason we’re in crisis is not because policymakers have been ignoring the advice of orthodox economists, but because they have been following it.
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Proponents of Modern Monetary Theory have predicted many of the crises that neoclassical economists completely whiffed on, because they actually measure and include data in their model that orthodox economics does not.

What is even more egregious, however, are the superficial criticisms of MMT deployed to criticize it, which amount to not understanding it, because they can’t see how it fits in with their own view. That, however, is the point. It doesn’t “fit in” with their view, it replaces it with a different one.

Links:

https://www.telegraph.co.uk/business/2016/07/28/imf-admits-disastrous-love-affair-with-euro-apologises-for-the-i/

https://paulromer.net/the-trouble-with-macro/WP-Trouble.pdf

http://www.nytimes.com/2015/07/31/business/bailout-money-goes-to-greece-only-to-flow-out-again.html

https://www.3dpolicy.ca/node/459

https://www.gmo.com/north-america/research-library/why-does-everyone-hate-mmt/

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