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View Diary: Theoeconomics: they're selling us out and we're buying it! (23 comments)

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  •  I am not interested in arguing either, but (0+ / 0-)

    you are the one who mentioned the pursuit of knowledge and in the context of economics that means discovering the fundamental laws that can then be applied to human activities. But obviously you don't see it that way, but I can't imagine just what kind of "knowledge" you are pursuing.

    The reason that I took the time to write lengthy comments is because I wanted to know if you should be taken seriously. And now I know that you are not. Your dismissive attitude and your inability to explain just what your process is and what your goals are means that you are just screwing around. Nothing wrong with that, but you should add a tag to this diary to indicate that it is just a vent.

    Have a nice day.

    Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

    by hestal on Thu Nov 15, 2012 at 08:12:30 AM PST

    [ Parent ]

    •  As I understand it, though I could be wrong, MMT (2+ / 0-)
      Recommended by:
      hestal, Old Surgeon

      isn't trying to discover fundamental laws so much as describe how our monetary and national accounting system actually works today.

      I guess one "law" would be: we have a fiat currency.  Fiat currencies are an abstraction rather than a thing.  As such you can never run out of them.  Just as we never run out of inches, or score keepers run out of points.

      But I don't think this is a fundamental law of economics, just the internal logic of fiat currencies and other abstract units of account.

      The process MMT uses is empirical research into national accounting practices in regard to how our fiat currency flows through the economic system.

      The primary goal is to have an accurate description of the above so that we can understand policy options.

      A secondary goal is to make policy recommendations based upon how our monetary and national accounting system actually works.

      The most famous recommendation is a guaranteed jobs program.  How do we know we can afford this recommendation?  Cuz we have a fiat currency, which is nothing more than a unit of account, not an object that may or may not be in short supply.

      •  Thanks, Katiec. No need to spend any (0+ / 0-)

        more time here.

        Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

        by hestal on Thu Nov 15, 2012 at 08:54:31 AM PST

        [ Parent ]

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