A recent report by NPR reveals that the Clinton Administration's intention to pay off public debt raised self-inflicted conundrums. The consternation is evident in a document that makes for tragicomic reading. Cullen Roche has already done a great job of discussing the document from an MMT perspective and Tom Hickey has also drawn attention to the story. I won't repeat what has already been discussed elsewhere, but will reflect on one of the implications of a government deciding to pay off the entire public debt.
 

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Naked Keynesianism has an informative post on Garegnani, disciple of Sraffa, who passed away last weekend. Robert Vienneau provides a helpful synopsis and selected bibliography.

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Taking the role of effective demand seriously can sometimes seem to put you between a rock and a hard place in relation to other economists. Here, I want to consider the significance of demand in general as well as in terms of understanding the current crisis, particularly its connections to profitability.

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Yesterday (here) I linked to a post by Matias Vernengo on Keynes’ theoretical contribution in light of the capital debates. I thought it might be worthwhile to elaborate on a central aspect of Vernengo’s post, particularly as it concerns the fundamental differences between Keynes’ ideas and the interpretation of neoclassical synthesizers of his work. Vernengo’s perspective on the significance of Keynes’ theoretical insights and the deep flaws in the marginalist interpretation is one that is probably held by most heterodox economists working in Sraffian and Post Keynesian traditions. I would think MMT economists also tend to share this perspective.

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In previous posts, I have made frequent reference to the Cambridge Capital Controversy and its significance for macroeconomic debates. Robert Vienneau, who often writes on issues relating to this controversy, draws attention (here) to a recent post by Matias Vernengo which very clearly distinguishes Keynes’ contribution from the marginalism of the neoclassical synthesis and New Keynesian economics. Vernengo is addressing a recent post by Krugman on the history of macroeconomics.

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The impetus for this post is a short video in which Amy Goodman interviews David Graeber, one of the organizers of the “Occupy Wall Street” movement. Hat tip to Tom Hickey at Mike Norman Economics for the link. The interview touches on a number of important issues. Here, I want to explore some of the points raised by Graeber in his discussion of debt and taxes.

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