One thought on “ZeroHedge: Why MMT (Ultimately) Doesn’t Matter

  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.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s