2,204
Views
30
CrossRef citations to date
0
Altmetric
Review Symposium

The Critics of Modern Money Theory (MMT) are Right

Pages 45-61 | Received 17 Feb 2013, Accepted 01 Apr 2013, Published online: 08 Dec 2014

References

  • Aspromourgos, T. (2000) Is an employer-of-last-resort policy sustainable? a review article, Review of Political Economy, 12, pp. 141–155. doi: 10.1080/095382500406477
  • Aspromourgos, T. (2011) Can (and should) monetary policy pursue a zero real interest rate, permanently?, Metroeconomica, 62, pp. 635–655. doi: 10.1111/j.1467-999X.2011.04133.x
  • Blinder, A. & Solow, R. (1973) Does fiscal policy matter?, Journal of Public Economics, 2, pp. 319–337. doi: 10.1016/0047-2727(73)90023-6
  • Dalziel, P. (1990) Market power, inflation, and incomes policy, Journal of Post Keynesian Economics, 12, pp. 424–438.
  • Fiebiger, B. (2012a) Modern money and the real world of accounting: the U.S. Treasury does not spend as per a bank, Working Paper No. 279, Political Economy Research Institute, University of Massachusetts, Amherst, MA.
  • Fiebiger, B. (2012b) A rejoinder to Modern money theory: a response to critics, Working Paper No. 279, Political Economy Research Institute, University of Massachusetts, Amherst, MA.
  • Fischer, S. (1995) Central bank independence revisited, American Economic Review, 85, pp. 201–206.
  • Forstater, M. & Mosler, W. (2005) The natural rate of interest is zero, Journal of Economic Issues, 39, pp. 535–542.
  • Friedman, M. (1953) The case for flexible exchange rates, in: Essays in Positive Economics, Chicago: University of Chicago Press.
  • Friedman, M. (1961) The lag in effects of monetary policy, Journal of Political Economy, 69, pp. 447–466. doi: 10.1086/258537
  • Godley, W. (1999) Seven Unsustainable Processes, Special Report, Annandale-on-Hudson, NY: Levy Economic Institute.
  • Godley, W. & Lavoie, M. (2007) Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth, London: Palgrave/Macmillan.
  • Haliassos, M. & Tobin, J. (1990) The macroeconomics of government finance, in: B. Friedman & F. Hahn (Eds) Handbook of Monetary Economics, Vol. 2, Amsterdam: North-Holland.
  • Keynes, J.M. (1936) The General Theory of Employment, Interest and Money, London: Macmillan.
  • Krugman, P. & Taylor, L. (1978) Contractionary effects of devaluation, Journal of International Economics, 8, pp. 445–456. doi: 10.1016/0022-1996(78)90007-7
  • Lavoie, M. (2013) The monetary and fiscal nexus of neo-chartalism: a friendly critique, Journal of Economic Issues, 47, pp. 1–32. doi: 10.2753/JEI0021-3624470101
  • Mehrling, P. (2000) Modern money: fiat or credit?, Journal of Post Keynesian Economics, 22, pp. 397–406.
  • Minsky, H. (1993) The financial instability hypothesis, in: P. Arestis & M. Sawyer (Eds) Handbook of Radical Political Economy, Aldershot: Edward Elgar.
  • Mitchell, B. (2013) I wonder what the hell I have been writing all these years, Bill Mitchell—Billy Blog, February 12. Available at http://bilbo.economicoutlook.net/blog/?p=22701
  • Myatt, A. (1986) On the non-existence of a natural rate of unemployment and Kaleckian micro underpinnings to the Phillips curve, Journal of Post Keynesian Economics, 8, pp. 447–462.
  • Olivera, J. (1964) On structural inflation and Latin-American ‘structuralism’, Oxford Economic Papers, 16, pp. 321–332.
  • Palley, T. (1994) Escalators and elevators: a Phillips curve for Keynesians, Scandinavian Journal of Economics, 96, pp. 117–123. doi: 10.2307/3440671
  • Palley, T. (1996) Post Keynesian Economics: Debt, Distribution, and the Macro Economy, New York: St. Martin's Press/Macmillan.
  • Palley, T. (1997) European monetary union: an old Keynesian guide to the issues, Banco Nazionale del Lavoro Quarterly Review, 50, pp. 147–164.
  • Palley, T. (2000) Stabilizing finance: the case for asset based reserve requirements, Financial Markets and Society, The Financial Markets Center, Philomont, VA, August.
  • Palley, T. (2001) Government as employer of last resort: can it work?, in: Industrial Relations Research Association, 53rd Annual Proceedings, January, 5–7, New Orleans, LA.
  • Palley, T. (2001–02) The e-money revolution: challenges and implications for monetary policy, Journal of Post Keynesian Economics, 24, pp. 217–234.
  • Palley, T. (2003a) The backward bending Phillips curve: wage adjustment with opportunistic firms, Manchester School of Economic and Social Studies, 71, pp. 35–50. doi: 10.1111/1467-9957.00333
  • Palley, T. (2003b) Asset price bubbles and the case for asset-based reserve requirements, Challenge, 46, pp. 53–72.
  • Palley, T. (2004) Asset-based reserve requirements: reasserting domestic monetary control in an era of financial innovation and instability, Review of Political Economy, 16, pp. 43–58. doi: 10.1080/0953825032000145454
  • Palley, T. (2012) The economics of the Phillips curve: formation of inflation expectations versus incorporation of inflation expectations, Structural Change and Economic Dynamics, 23, pp. 221–230. doi: 10.1016/j.strueco.2012.02.003
  • Palley, T. (2014) Money, fiscal policy, and interest rates: a critique of modern monetary theory, Review of Political Economy, 27(1), pp. 1–23.
  • Rochon, L.P. & Vernengo, M. (2003) State money and the real world: or Chartalism and its discontents, Journal of Post Keynesian Economics, 26, pp. 57–67.
  • Sawyer, M. (2003) Employer of last resort: could it deliver full employment and price stability?, Journal of Economic Issues, 37, pp. 881–907.
  • Seccarecia, M. (2004) What type of full employment? a critical evaluation of the government as employer of last resort policy proposal, Investigacion Economica, 43, pp. 15–43.
  • Selgin, G. & White, L. (1987) The evolution of a free banking system, Economic Inquiry, 25, pp. 439–457. doi: 10.1111/j.1465-7295.1987.tb00752.x
  • Sumner, S. (2011) Where MMT went wrong, The Money Illusion blog, July 28. Available at http://www.themoneyillusion.com/?p=10238
  • Sunkel, O. (1958) La inflacion chilena: una enfoque heterodoxo, El Trimester Economico, 25, pp. 570–599.
  • Tobin, J. (1963) Deficit, deficit, who's got the deficit?, New Republic, 148, p. 10.
  • Tobin, J. (1972) Inflation and unemployment, American Economic Review, 62, pp. 1–26.
  • Tobin, J. (1982) Money and finance in the macroeconomic process, Journal of Money, Credit and Banking, 14, pp. 171–204. doi: 10.2307/1991638
  • Tobin, J. & Golub, S. (1998) Money, Credit, and Capital, Boston: Irwin McGraw-Hill.
  • Tymoigne, E. & Wray, L.R. (2013) Modern money theory 101: a reply to critics, Working Paper No. 778, Levy Economics Institute of Bard College, Annandale-on-Hudson, NY.
  • Tymoigne, E. & Wray, L.R. (2014) Modern money theory: a reply to Palley, Review of Political Economy, 27(1), pp. 24–44.
  • Wray, L.R. (1998) Understanding Modern Money: The Key to Full Employment and Price Stability, Cheltenham, UK: Edward Elgar.
  • Wray, L.R. (2000) Money and inflation, Working Paper No. 12, Center for Full Employment and Price Stability, University of Missouri—Kansas City.
  • Wray, L.R. (2007) A Post Keynesian view of central bank independence, policy targets, and the rules versus discretion debate, Journal of Post Keynesian Economics, 30, pp. 119–141. doi: 10.2753/PKE0160-3477300106
  • Wray, L.R. (2012) A meme for money, Working Paper No. 736 (Levy Economics Institute of Bard College).

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.