Sunday, 20 May 2018

#MMT Making Rain, The Mystery of the Quotient-


  1. Roger January 29, 2016 at 9:11 am # 
    John G.
    And from the same blog, this may help with some of your misconceptions.
    ”There is thus no conflict between the statements “Recorded income equals recorded expenditure” and “Expenditure equals income plus the change in debt”. But there is a very big difference between a macroeconomic theory which begins from the proposition that “Aggregate demand equals aggregate income” and one that commences from “Aggregate demand equals income plus the change in debt”. The former is only true in a Loanable Funds model of lending; the latter is true in the endogenous money world in which we actually live—as Schumpeter, Minsky, and (arguably) Keynes have asserted before us.”
    Steve Keen.
    this moves on from your link where Bill Mitchell and Steve Keen are clearly considering each others view point. Wesley has it seems also looked at this and might find Steve Keens quote above interesting. I read this yesterday but couldn’t find the link until I looked again this morning.
    • JohnG January 29, 2016 at 9:30 am # 
      ”There is thus no conflict between the statements “Recorded income equals recorded expenditure” and “Expenditure equals income plus the change in debt”. But there is a very big difference between a macroeconomic theory which begins from the proposition that “Aggregate demand equals aggregate income” and one that commences from “Aggregate demand equals income plus the change in debt”. The former is only true in a Loanable Funds model of lending; the latter is true in the endogenous money world in which we actually live—as Schumpeter, Minsky, and (arguably) Keynes have asserted before us.”

      Steve Keen.
      Which, in the context of private sector income means, that the private domestic sector is running a deficit i.e. taking on debt.
      But aggregate demand could rise absent increased debt if the combination of government net spending and foreign sector spending were in deficit.
      Spending equals income.
      (I – S) + (G – T) + (X – M) = 0
      If he wants to talk about loanable funds theory, he should resume his little cat fight with Krugman. It’s nothing to do with MMT.
      • Roger January 29, 2016 at 10:38 am # 
        From Michael Hudsons Blog on a platform with Stephanie Kelton.
        Does Stephanies definition accord with your approved view John G and Is Michael Hudson also a safe pair of hands free of thought crime?
        I have heard a number of Michael Hudsons speeches and lectures and really do agree with most of what he says, The same goes for Steve Keen. I also have nothing against You or Bill Mitchell Full employment is better than unemployment as a general principle (definitions of the particulars not withstanding). It seems we have very different world views , is that so surprising Australia is a very different place to Sweden or indeed the UK. I am not an academic, I presume that you are. I have always been self employed since i became professionally qualified.I assume you do not run and own your own academic institution. I undoubtedly fit the definition of oppositional defiance disorder, I’m wondering if you feel that you do too?
        Krugman and Keen will no doubt in due course either find an accommodation or agree to disagree ´´little Cat Fight´´ seems a weak metaphor for their quarrel.
        As I have said before thanks for the links and substantive points you have made they have been helpful to broadening my understanding of MMT.
        Michael Hidson on Max Kaiser
        https://www.youtube.com/watch?v=MBJ6airQhR0
        Our Host on Max Kaiser
        • JohnG January 29, 2016 at 8:33 pm # 
          What a load of ad hominem and drivel. You’re way off the mark.
          The difference between our world views has nought to do with geography.
          You clearly don’t understand MMT at the basic level. You haven’t got your head around the macro at all.
          You’re muddled yourself up with complexities and you’ve obscured the basic premise. So you are seeing conflicts where there are none.
  2. Roger January 29, 2016 at 9:14 am # 
    ” JohnG January 29, 2016 at 8:30 am #
    It’s still not any kind of intellectual response to my post but it’s at least in better taste than links to your appalling musical efforts.
    What will the kids do when you’re gone, oh people’s poet?
    I can’t grasp that one’s self worth and willful intellectual dishonesty can go together.”
    Cheer up Johng, life is fun and variety they say is the spice of it.