> http://krugman.blogs.nytimes.com/2011/08/15/mmt-again
>
> August 15, 2011
> Paul Krugman - New York Times Blog
>
> MMT, Again
Having taken a nap on this post, I now wish I could delete it like you can on Facebook. I was intrigued at first by his mathematics of hyperinflation. But then I realizing he's attributing this view to MMT, which is really an absurdly wrong rendering, every bit as stupid as the caricatures of Keynesianism he's always denouncing. Nothing in MMT says you should finance all deficits with emission. On the contrary, it says when there's inflation you should finance with bonds. It simply says you don't need to match up the one with the other -- issue bonds when inflation calls for it, issue money when demand calls for it.
He would explain this by saying he assumes nobody would buy your bonds. But as Mike Beggs pointed out a few weeks ago vis a vis David Harvey, that's a ridiculous view. People always buys your bonds. The question is how much at what price.
The discussion here on lbo-talk was at a much higher level.
Michael