Must Read: The Road to Serfdom

The Road to Serfdom by umkc.economists@gmail.com (With apologies to Friedrich Hayek) By Marshall Auerback The markets are again in free-fall and, once again, a lazy Mediterranean profligate is to blame.  This time, it’s an Italian, rather than a Greek.  No, not Silvio Berlusconi, bu this fellow countryman, Mario Draghi, the new head of the increasingly [...]

“The Quantity Theory of Money” Bullshit

The biggest fear and objection to MMT ideas of non debt based government spending is - inflation. Even progressive cite inflation as the reason why a ECB distribution of debt free money on a per capital basis should not be attempted no matter how attractive it appeared. When one asks why these words are intoned in a very serious voice " the quantity theory of money'. To non economists the words sound impressive but harmless. But belief in the power of this mantra is pervasive in the political classes and because it is believed it has power much like the witch doctors magic. This article by Maddog in Money and Public Purpose on the Daily Kos blog goes to the trouble to give us an antidote to the power of these words by explaining the even bigger juju formula it relies upon. He then explains the circular logic used by the witchdoctors, oops, I mean neoliberal economist to make the formula deliver the outcome he wants. Maddog concludes thus..