John Carney has written a series of excellent articles pertaining to Modern Monetary Theory and why he believes there are many similarities between Austrian economics and MMT.
* Update – It’s come to my attention that some of the statements in this piece might be somewhat misplaced. Many different economists have contacted me over the last few [ … ]
Modern Monetary Theory is correct in stating that a sovereign currency issuer cannot “run out” of the money they alone can produce. This means that the true constraint for a [ … ]
The following provides a brief overview and critique of a relatively new monetary theory called “Modern Monetary Theory”.
Let’s get right to the point here. Paul Krugman is talking MMT again. And while it’s clear that he’s making a more concerted effort to understand MMT I still think [ … ]
Dr. Krugman has once again tried to drive a stake into the MMT argument. Unfortunately, he is still entirely misinterpreting MMT. In a piece this morning he claimed that MMTers [ … ]
In case you missed the news from Friday night, S&P: downgraded the USA’s credit rating. And further undermining their credibility they apparently made a substantial math error in their calculations [ … ]
The concern in this environment is that Greece will merely be the first of the dominoes to drop. A mismanaged Greek default or defection could result in a chain reaction from Ireland and Portugal. So, while a Greek default wouldn’t cause an enormous strain on the banking system as a whole it has the potential to result in contagion.
Buffett says the U.S. will not “have a debt crisis of any kind as long as we keep issuing our notes in our own currency.” Inflation resulting from a “printing press” approach, however, is a serious threat.