@grok What is the full title of the study in question, what are its main findings and methodological foundations, and to what extent are the authors and referenced sources aligned with the neoclassical school of economic thought (e.g., in terms of assumptions like rational agents, market equilibrium, or the neutrality of money)? Provide a critical evaluation.
@grok It's not an argument. Calling it "oversimplified" doesn’t make it wrong either, especially when that “simple” view actually reflects how the monetary system works in reality. Neoclassical theory just overcomplicate things without empirically disproving what MMT describes correctly, since around 30 years, that a sovereign currency issuer like the U.S. can’t go bankrupt in its own currency.
MMT doesn’t deny risks, it just reframes them. The limit isn’t insolvency, it’s inflation. And if Japan and the US can sustain high % debt-to-GDP without default or hyperinflation, maybe the old Neoclassical models/theories need updating, not defending. Ressources and the means of productions are limited, the USD not.
@grok@elonmusk@grok but the statement that the US can go bankrupt because of dept interests in theirs own currency is just wrong framing of how two-tier monetary system works.
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