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Gnumonic posted:There are two sorts of claims floating around in this thread, both by people who support and oppose MMT: I also don’t get how the theory is really that useful, except as a way to promote government spending if you don’t think about it too much. It seems to make similar kinds of predictions as the government budgeting type of thinking, except it involves a nebulous quantity (inflation risk). Theory accuracy is not that useful if in order to take advantage of the theory’s improved accuracy, you need inputs to the theory which are not easy to estimate or obtain.
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Feb 2, 2019 19:29
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Dead Reckoning posted:I think everyone understands the theory, the question is whether that theory tells us anything useful about how we should run our government. Because same people are saying, "well, it's really just a more accurate way to model what already happens" Agreed. It isn’t a very useful “policy design model”, to use lingo from engineering, because one of the key inputs to the model, inflationary risk, is hard to predict. I’m not sure how you meaningfully apply the model to make government decisions in real time, except if you don’t think about it too much, and just want to say: Dead Reckoning posted:"Actually, it lets us spend whatever we want on democratic policy priorities without raising taxes."
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Feb 16, 2019 20:28
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