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View Diary: Modern Monetary Theory vs the Fiscal Cliff (65 comments)

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  •  Good Points (2+ / 0-)
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    psyched, Letsgetitdone

    Good points. Yeah, basically acerimusdux is talking about "the balanced-budget multiplier" discussed in a billyblog, remarkably entitled What is the balanced-budget multiplier?. As you & he point out, limited relevance to an open economy like Australia, USA  today. More applicable to the postwar USA.  Or maybe if we just use budget deficits to accomodate foreign deficits.

    bunnygirl60: I really am just a physics PhD so what I know about international economics is just about enough to fill a thimble.

    Well, that puts you ahead of most economists of the last few decades, who have much more than a thimble filled with anti-knowledge.

    •  Absolutely, Cal (0+ / 0-)

      My comment was based on Billy Mitchell's work. Warren Mosler, Randy Wray, and Bill Mitchell are the MMT "fathers." They've been the main figures in development of the approach. Others who have done important work include: Stephanie Kelton, Marshall Auerback, Scott Fullwiler, Mat Forstater, Jan Kregel, Pavlina Tcherneva, Rob Parenteau, and Eric Tymoigne.

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