Saturday, August 22, 2020

Foreign Affairs Magazine Essay Calls for More Mad Money Printing

The September/October 2020 edition of Foreign Affairs, the in-house publication of the Council on Foreign Relations, is out.

The edition includes an essay, The Pandemic Depression: The Global Economy Will Never Be the Same, by Carmen Reinhart, Minos A. Zombanakis Professor of the International Financial System at the Harvard Kennedy School. Subsequent to the completion of the article, she was named Chief Economist at the World Bank. And Vincent Reinhart, Chief Economist and Macro Strategist at Mellon.

It is a rambling piece recounting the damage done by the COVID-19 lockdowns but the only important sentence than needs to be read to understand the policy prescription contained in
the article is the second to last one:
Officials need to press on with fiscal and monetary stimulus.
In other words, they are calling for a defacto Modern Monetary Theory policy initiative. Deficits don't matter and you can just print any amount of money you want. This is the message being pushed out to the elitist establishment who read the magazine.

But MMT is sheer madness. I have just completed a 50-plus page report on the madness,  "Problems With  Modern Monetary Theory: A Comment on  Stephanie Kelton’s 'The Deficit Myth.'”

I haven't seen any review of Kelton's book cover the true irresponsible policy advocacy of MMT and its severe central planning advocacy that goes well beyond mad money printing. It is why I have completed this report.

The report is in the final production and distribution steps and should be available in about two weeks.


1 comment:

  1. I'm really looking forward to reading your critique/analysis of MMT.