ZeroHedge: Why MMT (Ultimately) Doesn’t Matter

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1. ZeroHedge today makes note of the expanding interest in Modern Monetary Theory (MMT).

   The basic math of a monetized economy is deceptively simple:

   M = G

   where M is the totality of money in existence at any given moment, and G is the totality of goods. You could say that M is the “value” of G, or vice versa, but that’s where things get tricky. For one thing, no one can take a complete inventory of M at a specific moment, and even if someone could the inventory would be different a moment later. For another, no one can tell you what G is. All attempts to define G in a scientifically rigorous manner have failed for one reason or another.

   Thus, MMT is the equivalent in economics to AGW in physics. It appears to contain some observable truths, but the mechanisms are ambiguous.

   ZeroHedge seems unconcerned that MMT appears to be a trending topic. After the broadly favorable reception this week of the Democrats’ “Green New Deal,” I think concern is warranted.

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