Saturday, 26 June 2021

A Marxist drones on about MMT. How exciting.



Marxists have a habit of droning on about almost everything without saying anything of any great interest. Anyway the latest in this genre is an article on the “Brave New Europe” site entitled “A look at Modern Monetary Theory (MMT) from a Marxist  perspective.”

The article is actually discussion involving Costas Lapavitsas who is a professor of political economy at the SOAS University of London, and Jonas Elvander who is a Brussels-based journalist.

Anyway, I started to read it and got to this passage: “Second, and more crucially, the policies adopted have driven interest rates down to zero and there are negative consequences to that, which MMT ignores. But they cannot be ignored – we are living through them!”

Well the reality is that MMTers are well aware that their policies drive interest rates down: indeed, MMT actually ADVOCATES a permanent zero rate of interest on government liabilities, as did Milton Friedman.

At that point and given the obvious ignorance of the above two Marxists, I ceased reading any more of their article / discussion.

Yawn. Zzzzzzz.


P.S. Hat tip to Mike Norman Economics for alerting me to the above "Marxist" article.

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