John,
Could you define Monetary demand for us?if Aggregate Demand is the Combined demand for Good and services from the Private and public sectors of the economy.
What is the relationship between Monetary Demand? and Aggregate demand?Expectations and Confidence have an effect on Aggregate demand vis the propensity for private households and firms to save for a rainy day or to Spend in expectation of That the good times will continue to roll.
I know you are trying to start from brass tacks John but I do think that the Godley, Sectoral balances approach as described by David Graeber and Steve Keen and captured in the MMT Accounting Identity is More than persuasive, it is actually axiomatic.
https://www.patreon.com/posts/mmts-ignorance-18998966
Heres a Link to Steve keens exchange with Bill Mitchell on Trade deficits, it is on Policy questions which I find a lot to argue with the MMT’ers and Green
new dealers on I find them to be unreconstructed Stalinists and advocates for the gulag to boot.I will watch the rest of this series with interest.
I am having a long running discussion on twitter with advocates of Modern Monetary Theory (MMT) and their followers (MMTers). I need to apologise at the outset for not distinguishing between the founders of MMT and the followers of MMT. I know that over the years a considerable chasm grew between Keynes and the Keynesians. This was recorded by T.W. Hutchinson in “Keynes v the Keynesians” where he distinguished between what Keynes said and what Keynesians say he should have, or would have, said.
From a twinkle in Warren Mosler`s eye MMT is evolving into a politically acceptable theory and one that is beginning to drive politicians who may one day be in power and therefore be able to act upon these ideas. MMT is a theory that is fundamentally flawed and this needs to be pointed out before its ideas are used to damage the economy it is trying…
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