More Toxic Stuff from MMT

I attempted to be respectful in my last post, which dealt with a difficult and potentially sensitive subject. And so I appreciated the first comment following it: “Modest, professional, and humble. We need more bloggers with this type of positive, constructive objective. Nice work, JKH.” I try to make that effort in most cases, but this post willRead More

Comments on – “Modern Money Theory 101: A Reply to Critics” by Éric Tymoigne and L. Randall Wray

Introduction This is the paper by Éric Tymoigne and L. Randall Wray: http://www.levyinstitute.org/pubs/wp_778.pdf The paper as suggested by the title is a reply to various critics who have raised some issues around Modern Money Theory (Modern Monetary Theory, MMT) in recent years. MMT as a school of economic thought might be viewed in simple modelRead More

Economics and Banking – James Tobin 1963 (Redux)

Introduction This essay (unlike the previous) is an unfiltered look at the famous 1963 James Tobin paper on banking: Commercial Banks as Creators of “Money” (1963) http://cowles.econ.yale.edu/P/cm/m21/m21-01.pdf The Tobin paper has been the subject of recent vigorous blogosphere discussion. Steve Waldman has included a list of links at the conclusion of his own excellent postRead More

Krugman and Tobin on Banking

Paul Krugman cites a 1963 paper by James Tobin in the process of clarifying his own view of how banks should be considered as part of the broader financial system: “All the points I’ve been trying to make about the non-specialness of banks are there. In particular, the discussion on pp. 412-413 of why theRead More