Tuesday 27 November 2018

Money and the Impossibility of Equilibrium

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I commented here:

I wish I could pack as many good points into the space of 13 minutes [see video below]. 
From my very specific point of view, what needs more spelling out is the connection between the ideological compulsion to view the economy as a barter economy (unaffected in its basic relationships by money) and the misconceived idea of a benignly equilibrating system of free markets (capitalism). 

See my  (2) Neutrality of Money — Say's Law and The Need to Believe in a False Theory.

I see a great strength of MMT in its ability to show that money as it operates in a real economy disproves the mechanisms of equilibration asserted by mainstream economics (e. g. loanable funds theory).




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