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'Everything you wanted to know about MMT but were afraid to ask'.

Detailed but not too hard to follow article including a collection of different media from the last few years by different MMT experts to help explain MMT.

Suggest to start with the video  Does Modern Monetary Theory make sense? (half way down page) before digging into the text.

https://www.themacrotourist.com/posts/2019/01/23/mmt/

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Concise breakdown from Joe Weisenthal on Modern Monetary Theory.

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Part 1 of 2 of a followup to the OP in this thread is a must read. Why are all the classical economists unable to explain the current global economic situation? The Permabears have been waiting years for the sky to fall and still nothing. How come Japan's massive debt load hasn't sunk their economy? And where is all the **** INFLATION? 

https://www.themacrotourist.com/posts/2019/04/23/mmt1/   

PRACTITIONER'S GUIDE TO MMT: PART 1

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Interesting podcast on the new EU top job appointees and what that will probably mean for the ECB and central banks, (less independence and more MMT and OMT) lining up with Trumps recent nominations for Fed positions and following Japan towards negative interest rates. Talks gold, yields, assets and more.

Included in this thread because of the underlying MMT theme.

16 min.

 

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Excellent video on the development and essence of MMT in this interview with Warren Mosler, reposted from another thread.

 

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Some interesting long term charts on interest rates (just the last 700 years 🙂) and bond yields showing how the world of economics is changing over the long term.

Fed economists admitting they don't really understand why inflation has remained so low may point to a need to update their economic models.

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https://www.visualcapitalist.com/700-year-decline-of-interest-rates/

 

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What's this, Reuters talking down big stock market gains because Trump is boasting about them? :D

While pensions and retirement funds were lifted by the rise in stock markets, the president has avoided talking about one key point about who really benefits when the market rallies: Most of the gains go to the small portion of Americans who are already rich.

That’s because 84% of stocks owned by U.S. households are held by the wealthiest 10% of Americans, according to an analysis of 2016 Federal Reserve data by Edward Wolff, an economics professor at New York University. So when the stock market has a blockbuster year - such as the nearly 30% rise in the S&P 500 benchmark index in 2019 - the payoff primarily goes to people who are already rich.

https://uk.reuters.com/article/uk-usa-trump-speech-stocks-analysis/trump-touts-stock-markets-record-run-but-who-benefits-idUKKBN1ZZ1AT

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The more I look at MMT, the more it looks like Keynesian economics.

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16 minutes ago, Bopperz said:

The more I look at MMT, the more it looks like Keynesian economics.

I see the OP link has moved, here is the new link;

Everything You Wanted to Know about MMT (but were afraid to ask);

https://themacrotourist.com/2019-01-23-mmt/

"Yet isn’t that just Keynes theory? Yeah, trying to wrap my head around the difference between Keynes and MMT took me a while, but I think I got it.

Keynesians are still tied to the idea that we are bound by fiscal constraints whereas MMT’ers believe that the only real restraint is inflation."

 

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18 minutes ago, Bopperz said:

The more I look at MMT, the more it looks like Keynesian economics.

 

To me it looks like 'socialism for the rich', while the people get austerity the markets get unlimited amounts of free cash created out of thin air.  🧐

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8 minutes ago, dmedin said:

 

To me it looks like 'socialism for the rich', while the people get austerity the markets get unlimited amounts of free cash created out of thin air.  🧐

After leaving the Gold Standard there was felt the need to attach paper money to something even if that something was itself. It should instead be attached to people and infrastructure and their ability to produce wealth. Printed money can facilitate that, in fact always has done before MMT (see video above MMT 'how does it work'). Printing too much will trigger inflation so inflation data is used to regulate printing.

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Not sure if this is relevant to this particular thread but it's very funny, 'The ultimate goal is to sell the most sophisticated product to the least sophisticated client.'  :D

 

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