Relearning Economics

"Teach a parrot the terms 'supply and demand' and you've got an economist." -Thomas Carlyle

"We may have democracy, or we may have wealth concentrated in the hands of a few, but we cannot have both." -Louis Brandeis

You're better off learning system dynamics than taking economics.

@RBCtabris @TheEconRebel Calling DSGE cybernetics is a stretch. Solving a Bellman equation isn't the same as modeling feedback-driven systems with endogenous instability. System dynamics actually builds the feedback structure instead of imposing equilibrium on it.

@TheEconRebel sorry but recursive dynamic macro theory is the real cybernetics™️

@Restreamio @ProfSteveKeen Thank you. I appreciate the customer service.

@RelearningEcon @ProfSteveKeen Hi all. Truly sorry for the inconvenience caused during this session. We can see that you were in touch with our technical team and that this has been escalated for further review. Thank you for reporting; we'll look into this in detail 🙏

Without me, or Mike or Dave thanks to a @Restreamio glitch. But still worth watching

"Trying to improve a system by tinkering with its parts is like trying to improve a car's performance by painting it." -Jay Forrester

@mean_field_zane Maybe you should actually work in some of these industries or at the very least consult with them before you yap young buck...

It’s sorta funny how many people (mostly in industry, some left in academia but less so after macro-financial research program) are out there who believe the market portfolio moves up or down because of macroeconomic factors but rather it does it On Its Own. Despite oil, labour, inflation, rates decisions, even production data moving the market so much, they still don’t think there’s a giant macro lever for asset returns.

@fiat_money @mean_field_zane Yeah, he is a retard, he spent a little too much drinking this past year instead of learning economics.

@RelearningEcon @mean_field_zane I didn’t think it could he this hilarious, but it is! He is worried that there will not be deposits that can be loaned out to businesses. And these people grumble about too much emphasis on accounting, hahaha

Having argued with so many of them on here, it’s crazy the degree to which MMTers literally believe economics is just pushing accounting identities around. They genuinely do not consider that real consumption goods, savings decisions, labour decisions, risk, or inflation exist. I argued with one who didn’t think a model of banking should have a consumption good numeraire.

@mean_field_zane Are you retarded? Literally the best SFC contain PF and behavioral functions. You are literally taking shit again ya lil creep.

MMT does not, in fact, describe the current economic system. MMTers love to use this bailey when criticized, but it’s incredibly thin. They strawman economics as someone not being stock-flow consistent (it’s consistent) or not getting the plumbing right (it models as much as it needs to for a particular question), but they themselves are utterly incapable of depicting the real economy, with things like consumption, labour, production, risk, and decisionmaking.

@fiat_money @mean_field_zane Yeah, he is all about those "loanable funds"

@RelearningEcon @mean_field_zane “Banks lend out deposits”

It's a highly rated book!

@thejaysnation Wish I could have seen but he feed on sportsnet plus has been gone for 10 minutes

Kazuma Okamoto with his 3rd homerun of the series, and the Jays are down 1! 🎥 Sportsnet | #Bluejays

@VeganVampire__ @EMaggiori_ Yes... because econ books have very high sale rates.🫠

@RelearningEcon @EMaggiori_ Perhaps he thinks his book sales will be worth it.

Typical conversation with an MMTer: MMTer: The government doesn't need taxes in order to spend! Me: Uh, no. The treasury actually needs to replenish its accounts by collecting taxes or selling bonds. Otherwise it is not allowed to continue spending. The central bank doesn't guarantee it will buy any specific number of bonds, and it doesn't provide an unlimited overdraft to the treasury. Those are the rules. MMTer: But those rules are all self-imposed and could be changed!! Me: All rules are self-imposed and could be changed. We could allow local governments and NGOs to create money for example. The rules have been imposed for a reason--economists don't think politicians will use the power to create money judiciously, and there aren't major economic benefits to be gained from it. MMTer: Are you telling me you do not agree that a government deficit is a surplus of the non-government sector? Me: ...

@PerBylund @YouTube Lol

How costly are regulations? - lecture by Dr. Per Bylund youtu.be/LTik-W8Tgp0?si… via @YouTube

@mean_field_zane This little 20 year old, never fucked a girl is talking out his ass again. Bro get a job...

MMT treats institutional plumbing, like TGA mechanics, reserve accounting, the sequencing of Treasury auctions or Fed operations, as if it were load-bearing for macroeconomic conclusions, but it just isn’t. None of these accounting details alter the consolidated government budget constraint, the intertemporal solvency condition, or the equilibrium conditions pinning down prices and quantities. The substantive content that survives translation into a real model is just Sargent-Wallace and FTPL: fiscal and monetary policy jointly determine the price level. Institutional detail only matters when it changes an agent’s optimization problem via a friction or a market-clearing condition, as in Bianchi-Bigio, where reserve scarcity shapes banks’ portfolio choices and the fed funds rate emerges endogenously. The right test is to model the plumbing exactly to the extent it alters economic decision-making, and not one step further. Most MMT operational claims fail this test, which is why the framework hasn’t produced tractable models macroeconomists actually use.

@whhatisachoice @TheEconRebel Oh right, I knew that already. Fucking beer is killing me right now

@RelearningEcon @TheEconRebel exxon, I haven't been online for a couple days tho

Join my server and learn... well.. whatever. discord.gg/M8sJ7Chh7

@TheEconRebel @whhatisachoice Lol

@RelearningEcon @whhatisachoice