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How grim have the outcomes for Turkey been compared to, say, Argentina and Zimbabwe where the central bank has followed orthodox dogma?

Turkey, unfortunately, hasn’t gone as far as to abandon the natural rate hypothesis.

[0]: https://economicsfromthetopdown.com/2023/03/23/inflation-the...



You can't say with that straight face that Argentina and Zimbabwe are following Orthodox Dogma. They aren't raising rates in an attempt to pull money out of circulation. They are essentially funding the government with the printing press and the results are exactly what you would expect. They are a case study in the problems with so called Modern Monetary Theory.


They've had inflation problems since before MMT was named, you can't pin that on MMT. No, they have a very classical balance-of-trade problem: importing more than you export causes the currency to decline against the fixed-point of the dollar, which makes imports more expensive. Increased prices for critical imports like oil == increased inflation.

(Venezuela used to be a big oil producer until 2016, at which point it declined, leading to an inflation blowup https://www.ceicdata.com/en/indicator/venezuela/crude-oil-pr... ; Maduro has been really bad for the country)

Money printing tries to paper over this but makes the problem worse, because the money they actually need is dollars, and only the US can print dollars.


I don't think MMT means you can just print as much money as you want, just that conceptually you can decouple how to pay for government programs from how to reduce inflation.


I think you meant "you can't decouple". The only logical thing in MMT was the promise to cut spending when inflation goes up. To which a rational response is that almost never you are able to cut back on social spending once you increase it.


"To which a rational response is that almost never you are able to cut back on social spending once you increase it."

You can once you have actually understood MMT. How is the price anchor managed under MMT theory? How does that work during a boom and thereby solves the problem you posit? What are the three system stabilisation mechanisms in MMT theory?

MMT suggests moving the stabilisation policy from the market for money to the market for labour and leaving the market to determine interest rates. That stops the current problems - price gouging, SME decimation, boom/bust in construction and increased mortgage rates.


Given that MMT rejects the natural rate hypothesis and replaces it with the price anchor hypothesis, that suggests you haven't got your understanding of MMT from the source materials.

MMT moves the stabilisation policy from the market for money to the market for labour. They are not doing that in Argentina and Zimbabwe. They are following IMF dogma.

Therefore they demonstrate the problems with neoliberalism.


They're a case study in how people completely fail to understand MMT.


Here you have the ex Minister of Economy for the current government of Argentina where on Twitter personally claiming that printing money does not produce inflación and explicitly mentions monetarism:

https://infocielo.com/axel-kicillof/telefono-milei-axel-kici...

Here is a news article showing how the money printing machine is out of control in Argentina:

https://www.bloomberglinea.com/latinoamerica/argentina/deuda...

That's opposite of Ortodox dogma.


Ortodox dogma in Argentina? You're totally wrong.




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