Translation: Countries can incur as much debt as they want, because they can "print" their way out of it without harmful consequences.
> inflation is the most important constraint in public spending
Translation: People's economic suffering is the most important constraint in government spending.
> most cases of hyperinflation in history, including the infamous Zimbabwe, are due to a supply shock
Translation: Most cases of hyperinflation in history were due to economic crisis.
Hyperinflation is due to creating far too much new money. Enough to foster price increases of at least 50% per month. Economic crisis does not necessitate doing that.
By the way, in the case of Zimbabwe, it was the government economic mismanagement that created the economic crisis that you blame for the monetary mismanagement. From your article: "From an economic perspective though the [government] farm take over and collapse of food production was catastrophic." Then the government chose to try "printing" its way out of the problem. Hyperinflation wasn't mandatory, it was a consequence of reckless behavior.
> how an honest reader of the MMT literature would arrive to that conclusion
The only substantial concession to inflation risk I've seen in the MMT literature is in conditions of "full employment." Feel free to set me straight if that's not correct.
Empirically speaking, inflation follows injecting money into an economy, and inflation is quite harmful. It seems MMT resists at least the first conclusion, if not both.
While we're on the topic of honesty, doesn't MMT feel like an economic "get rich quick" scheme to you?
Translation: Countries can incur as much debt as they want, because they can "print" their way out of it without harmful consequences.
> inflation is the most important constraint in public spending
Translation: People's economic suffering is the most important constraint in government spending.
> most cases of hyperinflation in history, including the infamous Zimbabwe, are due to a supply shock
Translation: Most cases of hyperinflation in history were due to economic crisis.
Hyperinflation is due to creating far too much new money. Enough to foster price increases of at least 50% per month. Economic crisis does not necessitate doing that.
By the way, in the case of Zimbabwe, it was the government economic mismanagement that created the economic crisis that you blame for the monetary mismanagement. From your article: "From an economic perspective though the [government] farm take over and collapse of food production was catastrophic." Then the government chose to try "printing" its way out of the problem. Hyperinflation wasn't mandatory, it was a consequence of reckless behavior.
> how an honest reader of the MMT literature would arrive to that conclusion
The only substantial concession to inflation risk I've seen in the MMT literature is in conditions of "full employment." Feel free to set me straight if that's not correct.
Empirically speaking, inflation follows injecting money into an economy, and inflation is quite harmful. It seems MMT resists at least the first conclusion, if not both.
While we're on the topic of honesty, doesn't MMT feel like an economic "get rich quick" scheme to you?