Saturday, March 17, 2012
According the MMT: The problems start WITH THE INTRODUCTION OF THE GOVERNMENT SECTOR WHICH ISSUES THE CURRENCY
The King of the MMTers tries to refute Bob Murphy.
Bill Mitchell claims to have discovered “the problem” with the basic Robinson Crusoe example. However, if one follows the “argument” closely, the problems appear BECAUSE of the introduction of a “government sector” which issues the currency:
[W]hereas his Robinson Crusoe example was meant to “prove” that government deficits (G > T) are not required for the non-government sector surplus (in this case, the private domestic sector surplus because he assumes away the external sector), this example, clearly refutes that once a government sector is introduced (which issues the currency).
Straight from the horse's mouth, as they say.
I have a solution. Don't have a "government sector" and, whatever you do, don't let it issue any "currency".