Thursday, January 10, 2013

Trillion-Dollar Coin and NGDP targetting

Ever since I was introduced to MMT, I've been surprised by which elements of it have been adopted either into the popular press, or the academic mainstream, and which have not.

On the academic front it's been a non-started. The Sumner NGDP proposal and associated futures market have gained the most traction, despite the fact that any sort of expectations-only manipulation lacks a mechanism and relies on the Tinkerbell effect, and NGDP futures are simply unworkable.But NGDP targetting is a logical extension of the Monetary models that currently defined academic macro.

On the popular front, it's been Beowulf’s $1T coin of all things. Mosler was mentioned, but nothing about MMT, about how fiat currency works, vertical or horizontal money, etc. I think it's caught traction because it's something that, at least in theory, one political party can use to best the other.

All politics are local. All paintings are self portraits.

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