MMT vs. Austrian School Debate

MODERN MONETARY THEORY VS. THE AUSTRIAN SCHOOL:
MACROECONOMIC DEBATES AMONG THE HETERODOXY

A public debate on macroeconomic theory and policy with leading thinkers from Modern Monetary Theory (MMT) and the Austrian School. Warren Mosler represents MMT, Robert Murphy, Ph.D, represents the Austrian School, and John Carney moderates.

DEBATERS



MODERATOR

[jonflugstad]

Mike Norman is now complaining about disrespect when he laughed at Peter Schiff when he forecasted the financial crisis back in 2007. 

[hikerstl]

The only disrespect I saw was from the guy who claimed he saw disrespect.

[miker]

I respect Warren Mosler in this debate for his candor about how the current system works. He admits, that the whole system is based on compulsion, monopoly, violence and political control. He admits that this is how it is and I'm just explaining how the game works.

[DiogoVKersting]

- So you see the government is like a cheater?
- Yes.
- And you don't see anything wrong with that?
- No, that's just the system we live in.
- OK, so when the government does it, it's not cheating, but any other group does it, it's cheating?
- Well, yes they make the rules.
- Why is it OK for them to make rules that benefit themselves, at the expense of the citizens?
- Because they got the guns, and are not afraid to use them.
- And you don't see anything wrong with that?
- No, that's just the system we live in.

[shivan]

So hilarious with that guy who slams Murphy for being condescending - then proceeds to ask extremely condescending question. 

[j.markenglish]

At about an hour and thirty minutes into the debate - Mosler suggests that if people were really upset at unemployment, and not okay with relative low inflation - than there would be protests against the Fed.  But how many people outside the small percent of the population that can grasp economics and how complicated the whole system of MMT really is - would know enough to march against the Fed?  Those that partook in the "Occupy Wall Street" movement did not really understand that their real gripe was against the Fed, and not Wall Street.  But it takes some real thought exercise to reach that conclusion when everything around you looks bleak.

[jimfcarroll]

As a hard-core Austrian, I think this debate was FANTASTIC. I also think Austrians need to address MMT better than they have so far - AND I think this is one of the best conversations I've seen between the two schools. Thanks!

[chefstevekirsch]

lol... Who is Mike Norman to lecture people on being condescending? The guy is one of the biggest bullies that I have seen in economics.

[Rycology]

Lmao, moderator SLAUGHTERED the definition of insanity.

[shanedk]

"I think you're too condescending, Murphy! [proceeds to be condescending"

[causeimthesquid]

Prior to the Keynesian Revolution, inflation was defined as an increase of the money supply. Rising prices were seen as a function of the increased supply of money.

People who define inflation as simply rising prices skirt the issue. In your list of three reasons why prices can rise, you never even address monetary issues. The idea you can track and measure a general price level is hubristic at best. The economy is dynamic, prices move in different directions at the same time.

[kitaki]

Who else here in 2020? *money printer go brrr*

[mulllhausen]

i can't see how this is a debate at all. bob has ideas about the way the economy should be "there should be no central bank", and warren has no particular opinion but just says "we currently do have a central bank". those two statement don't contradict each other.

[brendansheehan]

That guy who was the first to comment I have seen before. The guys who runs the economics blog. I'm pretty sure he was a wallstreet econ. commentator pre-2008 housing market crash, and he was scoffing at an Austrian economist who was claiming that their was an impending crisis-- literally laughed in his face about it. Then, well, obviously, that guy got his foot stuck in his own mouth. Kind of funny the "condescending" tone he supposedly finds in R. Murphy's arguments- guy hasn't quite recovered since his misunderstanding.

[MusicalMemeology]

Anyone else think the Austrian guy looks like George Costanza?

[CaleyMcKibbin]

Yes, that is the same Mike Norman that laughed at Peter Schiff on TV now complaining about disrespect.  Lulz.

[davidr]

I’m no expert in economics, but the pandemic, although 99% of its effects were awful, had one good side to it. It taught people a little tiny bit about supply side economics. There have been times where, no matter how much money you had, you could not get everything you wanted or would normally be able to afford. Some things were so limited in supply that it was just unattainable and some supply was just outright nonexistent. All the demand in the world and even free money from the govt didn’t fix this problem.

[shawncowden]

"Every country that goes to war, immediately suspends the gold standard." EXACTLY. No fiat currency = much more limited capacity for governments to wage wars. Pretty sure that's a good thing.

[stefanobc]

The austrian guy is never able to try to say something is not true in what Mosler says. MMT is not about what should be, but mainly about "how things actually happen". Quite hard to contradict.

[thenkdshorts]

“When you need to go to war, you suspend the gold standard.” Gold standard prevents war … another great point, Warren, thanks!