The purpose of this blog is to promote Modern Monetary Theory. An understanding of MMT is the best antidote to the nonsense we hear so often from the mainstream media, most politicians, and even many professional economists who ought to know better.
If you’ve ever looked at a $5 bill or a £5 note and wondered why you can use it to buy a bottle of beer or a cup of coffee, when it is just a piece of paper and not backed up by anything obviously tangible; or, if you have ever wondered how governments can have a debt which they have no intention of ever repaying and why their creditors seemingly are totally unconcerned about it, then you might want to look further. Similarly, if you’ve ever had the suspicion that politicians either don’t know what they are talking about on economic matters, or deliberately want to mislead, then please read on and contribute if you can.
You may just be interested in the answers for reasons of simple curiousity. They do also however carry enormous political significance, which can divisive. Probably MMT will appeal to the political left more than the right but it is in itself quite neutral. It can be used equally by both sides of politics.
Critics of MMT charge that the creation of money is irresponsible. Yes, it can be in certain circumstances. Equally in others it is irresponsible not to create it. Resources are being wasted in most developed economies because of insufficient purchasing power. A waste of resources is relatively easily fixed by sensible demand management in an economy. A lack of resources isn’t.
Contributors are welcome to claim that some aspects of MMT are incorrect if there is also an explanation of why. But please avoid telling us that you just strongly disagree or you think we are talking rubbish!
Contributions and offers of help are welcome. Please email firstname.lastname@example.org
Sections of this blog may be quoted providing they are referenced back to their source.
(c) Copyright 2013 Peter Martin. All Rights Reserved.
Note: I don’t have any connection to the economist Peter Martin who writes for the Melbourne Age.