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Print


 

 

Fantastic! 

Congratulations, Randy, that you guys made them feel so defensive that they
craft such ridiculous resolutions.

 

Don' forget, we will teach 40 Chinese PhD students on MMT (you) and
institutionalism (me) at the Jilin Pluralist Summer School in mid-July.

 

Best,

Wolfram.

 

 

 

Von: AFEEMAIL Discussion List [mailto:[log in to unmask]] Im Auftrag
von Wray, Randall
Gesendet: Freitag, 3. Mai 2019 04:04
An: [log in to unmask]
Betreff: Re: [AFEEMAIL] Are Sustainability and Public Choice schools of
thought, per se?

 

Well here you go. For all the MMT haters. There is now actually a Senate
Resolution to condemn it. And FIVE, yes, count them FIVE have already signed
on. That's practically unanimous, I think. Write your senator.

 

Pasted and attached. LOL.

 

116TH CONGRESS 1ST SESSION S. RES. ll 
Recognizing the duty of the Senate to condemn Modern Monetary Theory and
recognizing that the implementation of Modern Monetary Theory would lead to
higher deficits and higher inflation. 
IN THE SENATE OF THE UNITED STATES 
llllllllll Mr. PERDUE (for himself, Mr. BRAUN, Ms. ERNST, Mr. MORAN, and Mr.
TILLIS) submitted the following resolution; which was referred to the
Committee on llllllllll 
RESOLUTION Recognizing the duty of the Senate to condemn Modern Monetary
Theory and recognizing that the implementation of Modern Monetary Theory
would lead to higher deficits and higher inflation. 
Whereas noted economists from across the political spectrum have warned that
the implementation of Modern Monetary Theory (referred to in this preamble
as ''MMT'') would pose a clear danger to the economy of the United States;
Whereas, on March 4, 2019, former Secretary of the Treasury Lawrence H.
Summers said that- (1) MMT is fallacious at multiple levels; (2) past a
certain point, MMT leads to hyperinflation; and 
2 
PAT19390 S.L.C. 
(3) a policy of relying on a central bank to finance government deficits, as
advocated by MMT theorists, would likely result in a collapsing exchange
rate; Whereas, on February 26, 2019, Jerome Powell, Chair of the Board of
Governors of the Federal Reserve System, said: ''The idea that deficits
don't matter for countries that can borrow in their own currency I think is
just wrong''; Whereas, on March 25, 2019, Janet Yellen, former Chair of the
Board of Governors of the Federal Reserve System, disagreed with those
individuals promoting MMT who suggest that ''you don't have to worry about
interest-rate payments because the central bank can buy the debt'', stating:
''That's a very wrong-minded theory because that's how you get
hyper-inflation''; Whereas the March 2019 report entitled ''How Reliable is
Modern Monetary Theory as a Guide to Policy?'' by Scott Sumner and Patrick
Horan of the Mercatus Center at George Mason University found that- (1) MMT-
(A) has a flawed model of inflation, which overestimates the importance of
economic slack; (B) overestimates the revenue that can be earned from the
creation of money; (C) overestimates the potency of fiscal policy, while
underestimating the effectiveness of monetary policy; (D) overestimates the
ability of fiscal authorities to control inflation; and (E) contains too few
safeguards against the risks of excessive public debt; and (2) an MMT agenda
of having fiscal authorities manage monetary policy would run the risk of- 
3 
PAT19390 S.L.C. 
(A) very high debts; (B) very high inflation; or (C) very high debts and
very high inflation, each of which may be very harmful to the broader
economy; Whereas the January 2019 report entitled ''Modern Monetary Theory
and Policy'' by Stan Veuger of the American Enterprise Institute warned that
''hyperinflation becomes a real risk'' when a government attempts to pay for
massive spending by printing money; and Whereas the September 2018 report
entitled ''On Empty Purses and MMT Rhetoric'' by George Selgin of the Cato
Institute warned that- (1) when it comes to the ability of Congress to rely
on the Treasury to cover expenditures, Congress is, in 1 crucial respect,
more constrained than an ordinary household or business is when that
household or business relies on a bank to cover expenditures because, if
Congress is to avoid running out of money, Congress cannot write checks in
amounts exceeding the balances in the general account of the Treasury; and
(2) MMT theorists succeed in turning otherwise banal truths about the
workings of contemporary monetary systems into novel policy pronouncements
that, although tantalizing, are false: Now, therefore, be it Resolved, That
the Senate- 1 (1) realizes that deficits are unsustainable, irre-2
sponsible, and dangerous; and 3 (2) recognizes- 4
4 
PAT19390 S.L.C. 
(A) that the implementation of Modern 1 Monetary Theory would lead to higher
deficits 2 and higher inflation; and 3 (B) the duty of the Senate to condemn
4 Modern Monetary Theory

 

 

L. Randall Wray

Senior Scholar, Levy Economics Institute

Papers: www.levyinstitute.org/publications/?auth=287
<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.levyinstitute.org_p
ublications_-3Fauth-3D287&d=DwMF-g&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft
-wwo&r=LtbujWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=TfnSFuuS30IX6ZiE2L_LadI
xVQoZf05h5OPArLvfZsE&s=hJpME4rgr72cWEQgdqCHRTiMGsyJrKWOCPvB6bD4PRg&e=> 

Co-editor Journal of Post Keynesian Economics
ISSN 0160-3477 (Print), 1557-7821 (Online)
www.tandfonline.com/toc/mpke20/current
https://urldefense.proofpoint.com/v2/url?u=http-3A__www.tandfonline.com_toc_mpke20_current&d=DwICAg&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=LtbujWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=fBMoMpxGQpJSim-6KlsOs9ZeBANTGprjIpimY_hp8OU&s=o-3tyd6q8Q3fA0HKyQ2ZDl93maQS4dWb-WFi45TcofY&e=
<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.tandfonline.com_toc
_mpke20_current&d=DwMF-g&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=Ltb
ujWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=TfnSFuuS30IX6ZiE2L_LadIxVQoZf05h5
OPArLvfZsE&s=yeuARFU15FwD_Th4w9YW2iGL-lE5agZOuvehYEOuXvM&e=> 



New Book: Why Minsky Matters: An Introduction to the work of a maverick
economist, Princeton University Press
https://urldefense.proofpoint.com/v2/url?u=http-3A__press.princeton.edu_titles_10575.html&d=DwICAg&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=LtbujWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=fBMoMpxGQpJSim-6KlsOs9ZeBANTGprjIpimY_hp8OU&s=RAQwOqNus_I2rjrvIXXNQ8iHckZvXYem5Arv1DesRCc&e=
<https://urldefense.proofpoint.com/v2/url?u=http-3A__press.princeton.edu_tit
les_10575.html&d=DwMF-g&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=Ltbu
jWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=TfnSFuuS30IX6ZiE2L_LadIxVQoZf05h5O
PArLvfZsE&s=SaMgQaw3sswsDNFTj--KDS-ZkL2pzI6QGz-fp20WQgU&e=> 

 

New Book: Modern Money Theory: a primer on macroeconomics for sovereign
monetary systems, Palgrave Macmillan
https://urldefense.proofpoint.com/v2/url?u=http-3A__www.palgrave.com_page_detail_modern-2Dmoney-2Dtheory-2Dl-2Drandall-2Dwray_-3Fisb-3D&d=DwICAg&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=LtbujWNPdbzw6j8eq9-RJVMBctp9ndCoqGEy57VsNLQ&m=fBMoMpxGQpJSim-6KlsOs9ZeBANTGprjIpimY_hp8OU&s=Jwvg2w5vwdNHDhsin0c_gdY5bktMsKWFwGvHSDFt2KI&e=
9781137539908
<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.palgrave.com_page_d
etail_modern-2Dmoney-2Dtheory-2Dl-2Drandall-2Dwray_-3Fisb-3D9781137539908&d=
DwMF-g&c=Cu5g146wZdoqVuKpTNsYHeFX_rg6kWhlkLF8Eft-wwo&r=LtbujWNPdbzw6j8eq9-RJ
VMBctp9ndCoqGEy57VsNLQ&m=TfnSFuuS30IX6ZiE2L_LadIxVQoZf05h5OPArLvfZsE&s=rxV0Q
tSdY_ewSA8NNyxfqU9HY_vPIPNPTvESMvQjVyU&e=>   

 

Please make note of my new email address as I will be transitioning all
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