Alan Greenspan on MMT [Modern Monetary Theory]

Says The Ayn Rand Guy That Had Flawed Model That Gave Us The Great Recession! So Sure Let's Listen To Him!

What a pathetic response of Greenspan. It’s so obviously almost a smear leaving one wondering did he even consider or look at any of the analysis, or is he dismissing mmt out of some sort of self preservation for fear of it exposing him further post GFC fully ignorant that it might actually support some of his public statements (eg the now famous solvency & SS not an issue answer to Paul Ryan’s prodding for otherwise).

His logic fail to fear monger using forex as a disastrous result of some policy that isn’t currently implemented is directed not at mmt economists but ignorant politicians and ignorant regular Joes & Janes because mmt economists & anyone who’s looked at and understood the analysis knows mmt is an objective description (started by a Wall St trader for god sakes) and NOT a policy proposal based on hypotheticals and predictions.
Just look at the fiscal policies in the New Deal & WWI mobilisation. Everyone knows that the full employment that was achieved by those fiscal responses i.e. massive govt spending aka issuance of currency into the money supply, is what gets the credit for getting the country out of the Great Depression.

So why isn’t the dollar now on its last legs as Span says? Could it be because it’s still considered an essential currency around the world to have some reserves in as a result of imports? Or that the US economy is still a vibrant engine whose citizenry is obligated to use $$ for paying taxes, fees, & fines and whose banks are regulated by the Fed & congress requiring them to use $$ for reserves in the banking system and their own loans/IOUs be denominated in dollars?

isnt that what china is doing ? print money like no end, zealous capital control and high taxes.

Why would anybody care about what Alan Greenspan has to say. He is a fraud who supports fraud. A neoliberal to his core

Not sure why he thinks people wouldn't want to hold Gov. Securities. Japan's Debt to GDP is sitting at about 240%, with negative interest rate. They don't seem to have any issues with people wanting to park their money in their government currency.

Laughs in Economics LOL

Sure what does Greenspan know? He is at best irrelevant, the personification of an unscientific economic theory (neoclassical) which substitutes a priori ideological axioms for empirical observations.

oh no, rich people can't trade overseas, boo fucking hoo. if we hadn't made these disastrous trade policies we wouldn't be in this mess. get real.

Let them leave they’ll lose in the end. Let the old school guys invest in rubles or pesos or whatever. Watch what we who stay in this system make

.........Laughing in the face of historical evidence.

Japan

Why should we be worried about the forex? Like people is going to change their dollars with euros for instance? Why? As far as there is no inflation, why should they do it?

After two years, he should be asked again about fiscal space. Directly should be asked about how to estimate the fiscal space

That is why MMT advocates a "floating exchange rate," but not a "free float "or a rate determined by the market.
Our currency is not pegged to any other currency or to gold or any other commodity.
Also, MMTs main policy prescription is for a universal jobs guarantee, which anchors the value of the domestic currency in a "fixed price/floating quantity" model. Thus, it cannot be inflationary.

Well, that was a TOTAL NON EXPLANATION!

What an idiot lmao

If the governments debt is my credit or asset according to Kelton then my debt is the government's credit or asset and they have no problem with me having tax debt payable to the government because it is already their asset or credit.

While MMT supporting people have a few goals as well, like full employment, they push and their reasoning on such might not be 100%. MMT pretty much just explains how fiat currency works. We more or less follow what MMT states today within given degrees. Raising interest rate to increase unemployment and thereby indirectly reduce spending to fight inflation. Is just one way to do it. Greenspan is the same guy that ignored asset inflation for many years that lead to 2008 mortgage bubble burst. While also being followed by Ben Bernanke that went wild on money printing via quantitative easing.

I can't decide whether Greenspan's reply was an example of a non-sequitur or an example of dementia.
Very strange indeed.

This is false, because there would still be fiscal responsibility exercised in determining how much surplus money would be issued and for what purpose. I don’t see how that would upset foreign exchange markets. Besides, what determines demand for a currency thus its price to that of another are seperate reasons and objectives. Alls they’d be concerned about is their availability and price stability.

He is saying that it will lead to the devaluation of your currency.

One risk, for sure. Another hyperinflation. MMT is socialism. It takes government money and detaches it from land, labor and capital. Most importantly labor. Time is money.

MMT simply jusy explain our CURRENT fiat currency system. Thats literally it. Whether you like it or not.

The demand for the currency would still be there because demand for fiat currency is because you go to jail if you dont pay your taxes.