The team at the Financial Times was very gracious in asking me to write a recent op-ed on heterodox economics and the financial crisis. I riff off Ray Dalio’s idea of the global “machine” and how an understanding of heterodox schools can lead to a better understanding of the machine and hopefully better outcomes for policy and economic prosperity in the future….
“It is useful to think of the global economy as one dynamic and complex machine. And in recent years, many have noted that the old clunker is stalling, even suggesting that it is in need of a total overhaul. The benefit of a breakdown is that it gives us all time to reflect.
It can even prompt us to roll up our sleeves, get our hands dirty and work out how to improve the machine. In the case of the economy, this inspection has led to a healthy questioning of mainstream economics and the insurgence of heterodox schools of economic thought.”
Read the full piece here.
No way to read the entire thing without buying a premium subscription…
anyway other place to read it?
Google the title.
I signed up for a free subscription, and it works.
Congrats Cullen!
Nice job C. Always glad to see free publicity for MMT in high places.
Nice one Cullen, FTAV is how I found out about MMT (yes I know you are not now.. but whatever) when they linked in your old primer. Was completely eye opening but what ever disputes there are now and have happened that I will always have my thanks to you for.
Really nice piece and good job making the FT.
Something to keep in mind going forward is MMT/MMR is a net drag for Cullen. Writing about MMT/MMR reduces traffic on PragCap.
We don’t get funding, we don’t get money showered on us for writing MMR. For me, it’s the opposite – this takes business away from me and is a real time sink.
I kept my name secret for a long time because I thought it would be a negative for my reputation. I am sure this has cost me business already and will cost me more in the future. It certainly steals time from my money producing activities.
Going public on something like this is not a small decision for a professional with a career. Cullen’s getting out in front of this because he thinks it is important for the world to know how money works. I am doing my little part for the same reason.
Cullen,
Nicely done! Progress continues.
Well done, Mr. Roche.
Let’s not get into the name calling again. It’s really useless.
Greg at MNE gets it dead right. I’ve never been in this for politics. I’ve ONLY been in this to teach people how the system actually operates. Anyone who has read Pragcap for years knows this is 100% true. MMT articles are a negative drag on page views. If I were running Pragcap purely for income I can guarantee you one thing. It wouldn’t have ONE MMT article on it. MMT articles generate lots of comments, but are dead weight on overall page views. So the idea that I bad mouth MMT for page views is absurd and proves that reader has no idea how little people care about MMT articles in general.
Regardless, my goal has always been the same. I want an objective and honest view of economics. I don’t think policy plays a role in that. And I certainly don’t think someone has to understand JG’s to understand how the monetary system works. So I am sorry that there has been this divide, but I can’t, in good conscience, spread some of the MMT beliefs since they so directly conflict with the way I believe this stuff should be taught.
Also, I’ve never even said I disagree with the JG. I could be convinced that it’s a worthwhile policy. I said this to Scott since the very beginning when people started bad mouthing me for not pulling weight on THEIR politics. But I do feel the evidence of this program is both unproven and unconvincing.
So, disagree with my approach if you will, but please know one thing. We did not start MMR with malicious intent or because we want to torpedo MMT. MMT is a progressive approach and that’s great. I just don’t agree with that form of teaching or some of their views of the way the system works. To each his own. It’s sad that MMTers have viewed this olive branch with such negativity. I know there are a lot of MMTers who are great people who can overlook our differences for the vast amount we agree on. So pay this stuff no attention.
This comment was well said. Good tone. I think all readers (except the drama queens) appreciate when differences are expressed cordially. I definitely respect all attempts to take the high road.
Also, Cullen… very well written op-ed.
Thanks JK and to everyone else. I am extremely humbled to write an op-ed for a paper I have an enormous amount of respect for.
great stuff!
Thanks Ramanan. You’ve been a big help with a lot of stuff and I always enjoy your constructive criticism and support. Thanks!
Disgusting response from the MMT side. This article was nothing but a compliment to MMT and they still find something to gripe about. Cullen has provided these people with endless publicity and I have no idea why he even mentioned them in this article. I hope he remembers their thanklessness as MMR grows and his influence grows with it.
I think they coordinate these attacks. I see the same MMTers at the same websites making the same incessant attacks over and over again. It’s like they have marching orders from someone at the top who is telling them that it’s a good idea to piss off the entire world. Ignore them.
FDO15 and SS,
Just engage the issues. Be respectful. “Take the high road.” If a MMT supporter is trashing MMR or whatever, let em be. In the end they’re the ones that look silly. If they’ve got something reasonable to say, engage it. If they’re just being unreasonable and offensive, ignore them.
I’m probably closer to MMT than MMR at this point, but I have no interest in picking a side and being a loyal blood brother. I get on these sites to learn. If I think anyone on either side is mistaken, I’ll question their reasoning. Either way, whether MMR ends up being right or wrong about this disagreement or that disagreement, I see all the disagreement as a “net benefit”
Don’t take it personally. Anyways, that’s my take it on. I’m grateful for all the ‘modern money’ websites.
I don’t take it personally. But I am tired of seeing MMTers parading around the internet acting like they have the answer to everything. They’re so arrogant and obnoxious and they don’t even see the flaws in their perspective because it’s so clouded by their political agenda. It’s sick.
btw, the saving net saving confusion continues forever here:
http://bilbo.economicoutlook.net/blog/?p=19171
No confusion, every MMT-er knows the difference.
FDO15,
Yeah, let this slide. 100% slide.
As one of the ‘monsters’ commenting at MNE, I though it was a nice piece and I hope it generates more interest going forward. Well done Cullen.
Of course you want Cullen to use his influence to generate attention for MMT. I think that’s the only reason you guys are actually mad at him now. You want to use him for the publicity so long as it helps promote MMT’s political agenda. As soon as he decided not to actively support your politics you all stabbed him in the back. Given the MMT response to this article I’d be surprised if he ever mentions MMT in a positive light again. You all have burned every bridge you’ve ever walked across. The whole theory has been marred by egos and politics.
Just in case you didnt see this today Cullen one of your favourite trolls on pragcap got slapped down on ftalphaville today
http://ftalphaville.ft.com/blog/2012/05/07/989781/cullen-roche-in-the-ft/
Jo | May 8 8:58am | Permalink
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Alphaville jumps the shark. Who ya gonna have on next David Icke?
For clarity:
Governments are ALWAYS spending constrained.
Governments HAVE to balance their books like a household.
…and the kicker. the USA is a DEGENERATE borrower.
Much love…..learn about politics and you might have something
ChrisJCook | May 8 9:59am | Permalink
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@Jo
Show me a war that was ever spending constrained.
Governments may be constrained by resources; they are NEVER constrained by the ability to spend.
Spending creates money: money does not create spending.
Learn about the reality of the financial system and YOU might have something.
Good old Jo. Thanks Andy. It’s nice to see he’s still out there kicking up dust!