by Being Libertarian
For quite a while now I’ve been pretty unsatisfied with mainstream as well as Austrian economics-based takes on the global economic situation, in particular phenomena such as record low to negative interest rates in countries with record debts (such as Japan), massive excess reserves, and QE 1 through infinity without much consumer price inflation, etc. No economic school I had learned about offered fully coherent answers regarding those.
So I thought it may be worthwhile to throw another heterodox economic school of thought commonly labeled “Modern Money Theory” (MMT) into the mix.
In particular, I’ve been reading L. Randall Wray’s book Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems which I highly recommend. It’s also available for free in online only format.
I believe that a lot of what is being revealed in this book is of relevance to all of us, regardless where we stand politically. MMT offers prescriptions that can work within a libertarian context just as much as they can in the context of a more interventionist state. Most of all: MMT offers a plain and unbiased description of how fiat money systems actually work………
…In my opinion MMT helps us explain and understand the current fiat money system much better than conventional or Austrian economics. This is coming from an Anarcho-Capitalist who has read books like Mises’ Human Action, Theory of Money and Credit, Socialism, and many others, so don’t think I say this lightly!….