Bill Mitchell: Demystifying Modern Monetary Theory

Naked Capitalism has the article Bill Mitchell: Demystifying Modern Monetary Theory which presents the video below.

This talk is wide-ranging, and starts by pointing out that in key ways, Modern Monetary Theory incorporates basic concepts that have perversely omitted from mainstream macroeconomics, largely for ideological reasons. This conversation does not get much into central bank operations, which is the basis for MMT’s claim that it is a much more accurate representation of how monetary operations work for a fiat currency issuer like the US than textbook or popular press accounts that are based on outdated “gold standard” notions.

I can speculate on why other people have such a hard time accepting such simple explanations of how to fix the economy and what is wrong with our tightly held mythical beliefs about the economy, but I’d rather hear from readers who still cannot accept what has now become obvious to me.

Please comment on why you think what Bill Mitchell says cannot possibly be true.

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