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My view of MMT – essentially, the idea that the state’s only “budget constraint” is inflation –

is that it is technically correct, but can’t be sold politically, because it violates the ancient constitutional principle that the state should spend money only with taxpayer consent.

A second misconception – which New Keynesian economists have perpetuated – is that the only obstacle to continuous full employment is “sticky” prices and wages. 

Those who believe this have bought into the neo-classical view that economic agents always have rational expectations (based on complete information) about future prices and events.

Robert Skidelsky Project Syndicate 17 March 2020

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