Saturday, 2 February 2019

Yet another article by Stan Veuger criticising Modern Monetary Theory.

The article is entitled “Modern Monetary Theory and Policy” (published by the American Enterprise Institute).

One of Veuger’s first crititicisms of MMT is that MMT has “little focus on topics such as long term economic growth”. Well the answer to that is the fact of an economist or group of economists concentrating on topics A,B and C, while ignoring D, E, F etc is not a brilliant criticism of their treatment of A, B and C.

Because a biologist concentrates on four legged mammals while largely ignoring birds, is that a valid criticism of the biologist’s work on four legged mammals? As I’ve pointed out before, it’s amazing what a poor grasp of simple basic logic some economists and economic commentators have.

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