Wednesday 5 December 2018

MMT and Exports

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I have received the following reply to my comment here (the blog in question allows one to post a comment, but the comment does not show up in a thread; it can be seen only by the owner of the blog, who has sent me the following response to my comment:

Hi Georg, 
This is on your comment on my blog concertedaction.com 

Warren Mosler proposes dichotomously that exports are costs and imports are benefits. How is Mosler’s position related to the above finding?  
Mosler is wrong in thinking that exports aren't needed to growth. That is one thing many have criticized about Neochartalism. 
So basically "MMT" is a wrong theory. 
Ramanan

To which I have replied:

Thank you for your reply in which you write: "So basically "MMT" is a wrong theory". 
By that, do you mean 
MMT is a theory 
(a) not entirely wrong but containing flaws, notably an inadequate assessment of the role of exports, or 
(b) whose account of the role of exports implies that the entire edifice of MMT is erroneous, or 
(c) that is in its entirety wrong partly because of a mistaken view of exports and partly for a number of other reasons? 
Personally, I do not think that MMT is "basically a wrong theory" - I find it an excellent tool to study economics by criticising economics (lending a falsificationary "bias" to any study of economics), and learning-by-criticising economics by bringing more reality into the subject's purview. 
As for the Moslerian view of exports and imports, I have written this in my own blog: 
(2) A Puzzle: Exports = Cost, Imports = Benefit ?

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