Monetary Realism and MMT
Cullen Roche has a post up over at Pragmatic Capitalism about a new project we’re working on together. The recent back and forth about the Job Guarantee brought a bit of clarity to my thinking, and I think to many others too. I don’t fully support the Job Guarantee, and it’s clear the founders of MMT believe the JG is essential to MMT.
We’re starting an “offshoot” of MMT which we’re calling Monetary Realism. We’re massively indebted to the work of Mosler, Fullwiler, Kelton and the rest. We’re standing on the shoulders of giants.
But we’re not fully “in paradigm” (as they say), and we don’t want people to be confused that we are a source for pure MMT. We are not pure MMT. We do not want to undermine the work of the developers of MMT.
And, I want to be 100% clear – we are not against the mainstream MMT movement.
We just want to focus more on the insights of Warren Mosler, and what it means for the economy. We want to use these insights to make millions of lives better. Focusing on the operational realities will bring even greater recognition of those ideas, which should pave the way for a better functioning economy.
We have several other differences in focus as Cullen writes:
1. We side with Godley on the current account issue.
2. We view the state theory and the “taxes drive money” idea as incomplete.
3. We will focus more on productivity as a compliment to consumption as opposed to mainly looking at ways to increase aggregate demand.
4. We reject the JG as a central component of understanding the modern monetary system.
Still, we share a ton of common ground with MMT purists. Let’s not forget we grew up reading Mosler’s comments section.
The blog itself isn’t up yet, but it will be soon. www.monetaryrealism.com We’ll let you know when it is up.
Here’s one final note: We’re going to take the operational realities of modern money and put it everywhere. Everywhere.