A resolution has been forwarded in the Senate to condemn an economic theory:“Recognizing the duty of the Senate to condemn Modern Monetary Theory and recognizing that the implementation of Modern Monetary Theory would lead to higher deficits and higher inflation.”I guess on the one hand that we should be happy that anyone is even aware of Post Keynesian economic theory. But, to suggest that MMT is anything radical or dangerous–especially to the point of requiring an official Senate condemnation–is just plain bizarre. The resolution references the work of a number of mainstream economists in support of the condemnation, but I’ve already addressed that elsewhere. Neoclassical Macroeconomics: You know all those economists cited in the Senate resolution? If the Senate is going to get into the condemning-economic-theory business, I have some much better candidates for them.

Source: Forbes May 03, 2019 16:18 UTC