NU !! börjar folk att strömma till, för att höra vilka ekonomiska alternativ det finns. Gränsen är passerad. Nu tar vi inte mer.
Michael Hudson och ytterligare 4-5 ekonomer talade om sin Modern Monetary Theory (MMT) i en idrottsarena i Rimini i Italien för ett par dagar sen. Publiken jublade och ropade deras förnamn när de vandrade in mot scenen..
We walked down, and down, and further down the central aisle, past a packed audience reported as over 2,100. It was like entering the Oscars as People called out our first names. Some told us they had read all of our economics blogs. Stephanie joked that now she understood how the Beatles felt. There was prolonged applause – all for an intellectual rather than a physical sporting event.
Our Very Own Oscar Night in Rimini
Leaving the euro is not sufficient to avert austerity, foreclosure and debt deflation if Greece and other countries that withdraw retain the neoliberal anti-government, post-industrial policy that plagues the Eurozone. If the post-euro economy has a central bank that still refuses to finance public budget deficits, forcing the government to borrow from commercial banks and bondholders. What if the government still believes that it should balance the budget rather than provide the economy with spending power to increase its growth? In this case the post-euro government will tie itself in the same policy straitjacket that the Eurozone now imposes.
So what then is the key? It is to have a central bank that does what central banks were founded to do: monetize government budget deficits so as to spend money into the economy, in a way best intended to promote economic growth and full employment.
What MMT teaches today is indeed long-established knowledge and practice. The degree to which its logic and message have been excluded from the academic curriculum is testament to the neoliberal version of free markets: their policy only appears to work if they can excluded discussion of any alternatives – and indeed, exclude economic history itself.