Help a nonacademic out here. Are MMT ppl reasoning from M/P = L(y,r) where dL/dr < 0, thus higher r leads to lower L and thus higher P?
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I *think* it's about interest income and aggregate demand but tbqh MMT folks seem to largely reject formalization and I haven't read Kelton's book. so it is a little tricky for me to be confident in my assessment of why they think what they think. MMT remains a heterodox position
jul 18, 2025, 3:14 pm • 4 0 • view
MMT pretends that currency is money. They deliberately interchange two complete different words with completely separate meanings. Welcome to cognitive linguistic science! Thasounds of Currencies have failed, money has never failed. Bc money is a derivative of labor/producing/assets.
jul 19, 2025, 4:14 am • 0 0 • view
Gov can not spend what doesn't exist. Gov designates a legal tender currency payment system €£¥$.. (unit of measure) used to facilitate transactions. That's not money. Money is a derivative of labor/producing/assets that can only be created in the private sector to fund Gov via its payment system
jul 19, 2025, 4:09 am • 0 0 • view