Just a quick update, I’ve created a download page where I’ll keep the latest versions of my MMT models. It’ll be a quick and easy way to find them so you won’t have to dig through blog posts to find links.
The creator of True software has generously taken time to create the basic Keen growth model for me! That should be the jump start I need to get more familiar with how to do things in that software. I’m going to try and update this model to match all the latest stuff I’ve added to the Vensim model. Depending on how it goes, I might switch to True as my default workspace. The basic Keen growth model can be downloaded here:
And in other news, despite his obvious continuing disaproval, Krugman still seems genuinely interested in trying to understand MMT:
http://krugman.blogs.nytimes.com/2011/08/15/mmt-again/
Responses:
http://pragcap.com/paul-krugman-again
http://www.creditwritedowns.com/2011/08/more-krugman-on-mmt.html
I would also add that I agree with Krugman’s John Galt comment, but unfornutately this is one of the better “MMT manifestos” around. I did manage to find a less intellectually offensive “manifesto” though.
Modern Monetary Theory—A Primer on the Operational Realities of the Monetary System
11 Responses to “Latest news, download page, manifestos, and True model update”
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Fred,
You may also want to look at some of Kauro Yamaguchi’s work, which is related to, but quite different from Steve Keen’s work. A copy of one of his papers can be found at economicstability.org – Workings of a Public Money System
He is a PhD from Berkeley, and has worked with Jay Forrester, and teaches Business and Systems Dynamics in Japan.
I can give you more links to his excellent book with software models.
Thanks, I do appreciate info like this… feel free to post links or mail me anything additional you have.
Fred
Yamaguchi’s website From there a link to the 3rd draft of his book “Macroeconomic Dynamics” This is a zip file with a pdf draft of the book, and vensim models for each chapter, along with a vensim reader
You might also be interested in looking at his other website Future-Oriented Complexity and Adaptation Studies
Yep, I’ll probably read this stuff tonight.
If you haven’t seen it already, you might be interested in Gennaro Zezza’s site, sfc-models.net (“A network of people interested in stock-flow-consistent modeling in economics”).
http://sfc-models.net/
The debonair gentleman pictured, who looks like he should be running MI-6, is the late Wynne Godley. For many years, he worked on the Levy Institute’s economic forecasts (work that Zezza has continued).
http://www.levyinstitute.org/publications/?docid=1358
Thanks, I haven’t seen the sfc site… will check it out. I’ve read quite a few odds and ends about Godley and Minsky from the levy institute, but I never really paid attention to who runs that site. I’ll take a closer look at that one as well.
http://www.amazon.com/Monetary-Economics-Integrated-Approach-Production/dp/0230500552 This is the book to read for the expanded stock/flow model of MMT from Wynne Godley. Warning, it is extremely complex.
Wynne’s Monetary Economics co-author, Marc Lavoie, has posted some helpful powerpoint pressos that discuss their findings.
http://aix1.uottawa.ca/~robinson/Lavoie/presentations_e.html
One difference between Godley’s “New Cambridge Keynesian” and MMT was his concern about chronic trade deficits. The MMT position is that with a sufficiently large budget deficit, a trade imbalance isn’t an issue. As I’ve told Warren Mosler a time or 20, I’m convinced that MMT is right on the economics but that Wynne was right on the politics. The last two times the US fell into recession (end of 2007, end of 2000) were preceded by, as the economy moved towards full employment, the budget deficit becoming smaller than the trade deficit. This necessarily meant that domestic private sector savings were being drained away until the economy imploded.
http://www.ft.com/intl/cms/fd3b7774-789f-11df-a312-00144feabdc0.gif
Budget politics make it a deadlock cinch this will happen again the next time the economy recovers. If deficit doves are now fighting a losing battle against deficit hawks to run larger deficits in the middle of recession, what chance do MMT proponents have against deficit hawks AND deficit doves to run larger deficits at full employment? The only way out of this dilemma is to zero out the trade deficit (perhaps by some iteration of Warren Buffett’s import certificate market proposal). That way, the foreign sector would have no effect on the govt sector deficit / private sector savings balance.
will have to read about the import certificate market proposal… not familiar with that one yet. But overall, the politics does seem to be the biggest challenge
Thanks for the recommendation, I picked up the last copy of this book from Amazon this week
Really useful to have on the desk!