Bill Mitchell-en The Twitter echo chamber
(i) Twitterrak eta DTM1
(ii) Alderdi sozialdemokratak eta DTM2
(iii) QE delakoaz3
(iv) Generoa dela eta4
Ondorioa: more mindless tripe circulating on Twitter from attention seekers who have nothing constructive to offer.
1 Ingelesez: “It is Wednesday so just a few things to report and discuss. I have noted in recent weeks an upsurge in the Twitter noise about Modern Monetary Theory (MMT) and various statements along the lines that MMT economists are male chauvinists, mindlessly attack other heterodox economists because we are a religious cult, that we thrive on conflict, that only the US has a sovereign government and more. Quite amazing stuff. And these attacks are coming mostly from the so-called heterodox side of the economics debate although not exclusively. It is quite an interesting exercise to try to understand the motivations that are driving this social media behaviour. Things that would never be said face-to-face are unleashed with regularity these days. There appears to be a sort of self-reinforcing ‘echo chamber’ that this squad operate within and it seems to lead to all sorts of bravado that would be absent in face-to-face communication. None of the attacks seem to have any substance or foundation. They just reflect an insecurity with the way that MMT is creating awareness and challenging progressives to be progressive. And, they just make the Tweeters look stupid. I thought I would document some of the recent trail of nonsense to let you know what is going on in case you haven’t been following it. It is a very interesting sociological phenomena.”
2 Ingelesez: “As regular readers will know I am interested in the discussion as to why social democratic parties and the ‘Left’ have fallen so far out of favour.
My work over many years has been researching and writing about that theme for obvious reasons.
Without an effective progressive political voice there is little chance of retarding and stopping the damage that this neoliberal era is inflicting on societies.
My 2015 book – Eurozone Dystopia: Groupthink and Denial on a Grand Scale – explored them in the context of the history of European integration.
Our latest book – Reclaiming the State: A Progressive Vision of Sovereignty for a Post-Neoliberal World (Pluto Books, 2017) – explores those themes in detail.
Our follow up book (2019) will extend the theme into new areas.
My position on Brexit is informed by that research in addition to my work as one of the first MMT economists.”
3 Ingelesez: “[The paper discussed Quantitative Easing (QE) (asset purchase programs)] … “only a limited part of fresh resources injected in peripheral economies via QE were eventually used … to provide loans to domestic firms and households.”
My blog post really traversed these points and noted that:
1. QE is just an asset swap – reserves for bonds.
2. The asset swap drives up prices of the bonds, which lower their yields, and this might stimulate borrowing under some circumstances.
3. Banks do not loan out reserves (except overnight to each other).
4. Loans create deposits and are not reserve constrained.
5. Reserves are added later if necessary.
6. Loans are restricted by the demand from credit-worthy borrowers.
I asked the question: Why is a heterodox economics research unit still publishing stuff that is based on pure mainstream myths about how the banking system works?”
4 Ingelesez: “
1. My blog post was nothing to do with gender. Since when is it ‘male’ to point out an error in the academic debate?
2. To cast it as a disagreement (“we disagree”) is to then suggest the Tweeter agrees with the mainstream position that reserves are loaned out by banks and are required prior to loans being made.
It was not a disagreement. The Greenwich paper was a wrongful construction of the way modern banking works.
3. And then the insult “a macho sense of superiority”. That is no argument. Just the ‘squawk squad’ in action.”
The links were to these blog posts:
1. We need to read Karl Marx (August 30, 2011).
2. The roots of MMT do not lie in Keynes (August 25 2015).
The Amazon link was to our book Reclaiming the State: A Progressive Vision of Sovereignty for a Post-Neoliberal World (Pluto Books, 2017).(…)
“the ‘no Marx in MMT’ claims…
This is another myth that is now being advanced by many British Tweeters who are trying to discredit MMT – that ‘MMT only applies to the US’.
Even John McDonnell’s advisor claimed that.
I covered that claim in detail in these blog posts:
1. MMT is just plain good economics – Part 1 (August 9, 2018).
2. MMT is just plain good economics – Part 2 (August 13, 2018).
3. MMT is just plain good economics – Part 3 (August 14, 2018).”
6 Ingelesez: “So, lets get it straight – again.
It is certainly a “self-evident” that Australia, like all currency-issuing countries that do not borrow in foreign currencies or peg their currencies by any arrangement is sovereign in that currency.
To say otherwise is to misunderstand what currency sovereignty means.
The Australian government:
1. Issues its own currency exclusively. No-one else creates Australian dollar currency.
2. Requires all taxes and related obligations to be extinguished in that currency.
3. Can purchase anything that is for sale in that currency at any time it chooses, without financial constraints. That includes all idle labour.
4. Its central bank sets the interest rate.
5. The currency floats.
6. The Government does not borrow in any currency other than Australian dollars.