This brings me to the third question: what is the aim of MMT?.. [Kelton] simply wants to show that it is a myth that the state cannot run up deficits without consequences. Again, this does not seem very new or radical
The author answers their own question here: the aim of MMT is to understand the relationship between monetary supply and inflation. It’s “this is how the world works,” not “here is how the world should work and how we should get there.” Criticizing it for not incorporating a critique of capitalism is like criticizing the germ theory of disease for not incorporating a critique of capitalism.
And setting aside how much of MMT is new, it’s absolutely radical to question whether printing more money always leads to inflation. That’s been a fundamental axiom in western economic thinking for the last half century or so. “How are you going to pay for it” is a perennial political question in large part due to this.
The author answers their own question here: the aim of MMT is to understand the relationship between monetary supply and inflation. It’s “this is how the world works,” not “here is how the world should work and how we should get there.” Criticizing it for not incorporating a critique of capitalism is like criticizing the germ theory of disease for not incorporating a critique of capitalism.
And setting aside how much of MMT is new, it’s absolutely radical to question whether printing more money always leads to inflation. That’s been a fundamental axiom in western economic thinking for the last half century or so. “How are you going to pay for it” is a perennial political question in large part due to this.