February 7, 2019

Thinking about economic policy for future PM Corbyn

Comment on Richard Murphy’s ‘The political economy of Labour’s fiscal rule’

Blog-Reference

What is the unique selling proposition of MMT vis-a-vis good old Keynesianism? Keynesianism stands for temporary deficit spending with budget-balancing over the business cycle, MMT stands for permanent deficit-spending/money-creation.

However, with regard to the current situation in the UK with the interest rate close to the ZLB, this amounts to the same anti-Austerity policy. In practical policy terms, the fuss between Simon Wren-Lewis/Jonathan Portes and Richard Murphy over the relative merits of monetary and fiscal policy seems a bit overblown.

So let us look at politics. For political planers, the main issue is to make provisions for their worst-case-scenario that Jeremy Corbyn becomes the next PM. There are two groups who compete for the role of Mr. Corbyn’s economic policy adviser. The Wren-Lewis/Portes group attempts to keep Mr. Corbyn on the old path of monetary/fiscal policy albeit with more active employment and social policy, the Murphy group tries to get a handle on the Treasury/Central Bank for a permanent MMT deficit policy that spends on everything from employment to the NHS to a Green New Deal. The common denominator, though, is to prevent a potential PM Corbyn from pursuing a genuine socialist policy.

Because of Public Deficit = Private Profit, there is some perverse humor in the idea that Mr. Corbyn either adopts a temporary or a permanent free-lunch program for the Oligarchy.#1

Egmont Kakarot-Handtke


#1 Keynes, Lerner, MMT, Trump and exploding profit

Related 'MMT Progressives: The knife in the back of WeThePeople' and 'How Bill Mitchell stalks Jeremy Corbyn' and 'Richard Murphy: the MMT fraudster dressed up as realist' and 'Economics has arrived at the bottom of the proto-scientific shithole' and 'Mr. Corbyn and the perils of political economics' and 'Endtime for soapbox economists' and 'MMT and grassroots movements' and 'MMTers are NOT Friends-of-the-People' and 'Why the British Labour Party should NOT adopt MMT' and 'Economics as a cover for agenda pushing' and 'MMT: A Trojan Horse for Labour courtesy of the Oligarchy' and 'MMTers are false Progressives and false Friends-of-the-People' and 'MMT and the promotion of Wall Street socialism' and 'How to spot economics trolls' and 'Prophet Stephanie divines the seizure of the means of production of currency' and 'How Bill Mitchell stalks Jeremy Corbyn' and 'Economic backstabbing: Bill Mitchell hits again' and 'Bill Mitchell’s pure MMT teachings for British Labour' and 'The economist as useful political idiot' and 'Links on MMT-Progressives push Wall Street’s agenda' and 'Links on Austerity' and 'Political economics and intellectual corruption' and 'The retirement of a fake scientist and real agenda pusher' and 'Mission accomplished: Economists as useful idiots of the Oligarchy'.

For details of the big picture see cross-references Political Economics/Stupidity/Corruption.

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Twitter Feb 23, According to the Financial Times, Britain needs no "Corbynism"

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Twitter Oct 29, 2020

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