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The fun thing about MMT & #39;research& #39; is that there is no there there. There is no stripped-down model to illustrate the basic point of whatever they& #39;re trying to say. If you ask for one, you& #39;re told to go on a wild-goose chase. https://twitter.com/maxfawcett/status/1314381967324975104">https://twitter.com/maxfawcet...
When pressed, MMTers will say that they don& #39;t really say that public debts and deficits don& #39;t matter, but they& #39;re not at all displeased to receive support from people who haven& #39;t received this memo. 2/
When pressed, MMTers will say that in order to avoid inflation, the government can increase taxes instead of using monetary policy. (It& #39;s *always* & #39;increase taxes& #39;. It& #39;s *never* & #39;cut spending& #39;) 3/
This means that it would be the Department of Finance& #39;s job to manage inflation. Let& #39;s reflect on how absolutely *insane* that is. 4/
A fundamental lesson of the last 50 years is that Politicians. Cannot. Be. Trusted. To. Administer. Austerity. When. It. Is. Needed.
That& #39;s why we have the system we have now: countercyclical policy is delegated to Bank of Canada technocrats. 5/
That& #39;s why we have the system we have now: countercyclical policy is delegated to Bank of Canada technocrats. 5/
And it& #39;s not a matter of just increasing taxes on the rich. If you want to shut down inflationary pressures, you have to bring the hammer down on the middle class. They& #39;re the ones doing the spending. What government will do that? 6/
And then there& #39;s the fact that so much of fiscal policy is run by the provinces. Who& #39;s going to tell them what they can and cannot do? 7/
MMT is yet another manifestation of Canada& #39;s Cultural Cringe when it comes to economic policy. MMT was developed by Americans for the US, which is basically a closed economy. Canada is not. 8/
Americans really don& #39;t care what happens to their exchange rate, because it really doesn& #39;t matter to them. Our exchange rate *matters*. A monetary expansion that crashes our exchange rate has real effects. 9/
MMT is not wrong; it& #39;s just incredibly dumb. 10/10
