Daily Archives: March 20, 2013

Why MMT is Right and the Dreamers are Wrong: Kaldor Versus the Kaldorians

Posted on March 20, 2013 by Devin Smith | 298 comments

By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil

Dreaming, I was only dreaming
I wake and I find you asleep

– Billie Holiday “Gloomy Sunday”

The criticisms of Modern Monetary Theory (MMT) on the internet and in academia can be placed into three categories: the cranks; the nit-pickers; and the Kaldorians. The cranks make up by far the largest group. These are the people that simply have not bothered to understand the theory. These, which include some prominent academics, say things like: “The MMTers say that deficits don’t matter; they forgot about hyperinflation!” These people can usually be safely ignored as they are not arguing in good faith. Continue reading →

298 Comments

Posted in Guest Blogger

Tagged kaldor, MMT, Modern Monetary Theory

The Miracle Product That Cures Degenerative Entitlement Syndrome!

Posted on March 20, 2013 by Dan Kervick | 45 comments

By Dan Kervick

During last year’s presidential election, Dr. Willard M. Romney diagnosed a previously unrecognized epidemic illness that is eating away at the moral foundations of our country. Romney was the first medical scientist to grasp that 47% of our citizens have been transformed into an army of zombie parasites now known to the experts as “moochers.” The moochers have been infected with DES, Degenerative Entitlement Syndrome, a 21^st century plague whose victims live lives solely devoted to sucking funds from the bank accounts of decent people. Not one to sit idly by while an invasive undead horde saps and impurifies our precious bodily fluids, Dr. Romney attempted to sound the national alarm about the moocher scourge. But alas, he was ahead of his time. The country was not yet ready to hear his bracing but prescient DES warning.

Continue reading →

45 Comments

Posted in Dan Kervick

Tagged entitlement syndrome

Yglesias Cheers a Double Betrayal of Cyprus

Posted on March 20, 2013 by Devin Smith | 37 comments

By William K. Black

Slate’s Matthew Yglesias writes columns about economics and finance. Yglesias has been writing about Cyprus, and my critiques of the policies he has been proposing are the subject of this column. The short version of the background one needs to understand the issues is that Cyprus is in a crisis and the EU is willing to bail out its collapsing banks only if Cyprus raises revenues. The EU is unwilling to make the banks’ sophisticated creditors – the bondholders – take any losses. The EU wanted the banks’ least sophisticated creditors – the depositors – to take losses, even if their deposits were small enough to be within the deposit insurance limit. The reality, which the EU wishes to obscure by calling its proposal a tax, is that that the EU was insisting that depositors no longer be fully protected from loss by government deposit insurance. The EU demand was made shortly after the EU and Cyprus’ government pledged that depositors under the insurance limit would suffer no losses. Continue reading →