Economics and similar, for the sleep-deprived
A subtle change has been made to the comments links, so they no longer pop up. Does this in any way help with the problem about comments not appearing on permalinked posts, readers?
Update: seemingly not
Update: Oh yeah!
Wednesday, April 20, 2011
A note on Modern Monetary Theory
Just to note that of course a theory should be tested against the real world, and that the real tests of a theory are in the extreme outcomes and corner cases.
I therefore note that, in respect of the Krugman/Galbraith/Baker/cast of thousands debate, that Zimbabwe exists as a country as well as a debating point, and that it does have domestic currency treasury bills, and that it is a perhaps startling fact that throughout the unorthodox policy measures of the last ten years, Zimbabwe has, in fact, never defaulted on its domestic currency sovereign obligations. So I score this one for MMT.
In Gideon Gono's autobiography, linked above, he recounts how the IMF offered him a job for life as a director of monetary & economic research as a sinecure in an attempt to get him to leave Zimbabwe. Perhaps (particularly given the twists and turns of Zimbabwean politics over the last couple of years), they should come back, particularly if they are looking for more unorthodox approaches in future. I hope and trust that the Levy Economics Institute of Bard College isn't considering a counteroffer to the unsung hero of MMT.
this item posted by the management 4/20/2011 02:34:00 AM