Françoise Drumetz and Christian Pfister have enlivened us with a new Banque de France working paper “The Meaning of MMT.” I have read a lot of critiques of Modern Monetary Theory (MMT) over the years, and summarised what I saw as the reasonable critiques in a chapter in my latest book, “
Thanks for responding. I also was provoked by their take on this. As a former central banker, I expected better. Still, there are issues in their review that warrant a serious discussion, like the role of reserves vs. bond financing, see the recent BIS WP by Calvo and IMF WP by Singh & Stella, quoted by Calvo.
Sure, there were legitimate critical points within the text. However, I had gone through a laundry list of complaints within my book already, so I really didn’t want to cover that ground again. The passages that drove me up the wall distracted me from whatever good points the text has.
I come from an academic background where if you find a core problem with a paper, you either reject or demand a rewrite to deal with that problem first, then worry about the rest of the text after fixing.
(Interestingly enough, I never got any notifications about comments to my articles here, I just spotted this by accident.)
Thanks for responding. I also was provoked by their take on this. As a former central banker, I expected better. Still, there are issues in their review that warrant a serious discussion, like the role of reserves vs. bond financing, see the recent BIS WP by Calvo and IMF WP by Singh & Stella, quoted by Calvo.
Hi,
Sure, there were legitimate critical points within the text. However, I had gone through a laundry list of complaints within my book already, so I really didn’t want to cover that ground again. The passages that drove me up the wall distracted me from whatever good points the text has.
I come from an academic background where if you find a core problem with a paper, you either reject or demand a rewrite to deal with that problem first, then worry about the rest of the text after fixing.
(Interestingly enough, I never got any notifications about comments to my articles here, I just spotted this by accident.)
A very satisfying response, thank you.
Thanks - as noted above, I only saw this comment by accident, hence the delayed response.
Thanks - as noted above, I only saw this comment by accident, hence the delayed response.