Jul 25, 2022
Ep128[1/2] Dirk Ehnts: From mainstream to MMT https://youtu.be/m0uyelaD4uA https://make.headliner.app/project/5cca5c19-38ae-4aa6-8da8-b241d449689b
Welcome to episode 128 of Activist #MMT. Today I talk with Dirk Ehnts, about his personal journey to MMT, which happened only after obtaining a PhD in mainstream economics. One of Dirk's first hints that something was wrong, was discovering that Paul Krugman's 1991 new trade theory was not representative of the world in which we actually live. He was also told by his professors that what is obviously true must be ignored, which only serves to further diverge the theory from the world it purports to explain. Only after receiving his PhD did he discover MMT which finally put all the pieces together. It did so in a way that is falsifiable, which means its main assertions are provable or disprovable by empirical evidence.
(Here's a link to part two. I also interviewed Dirk in episodes 66 and 69. A list of the audio chapters in this episode can be found at the bottom of this post.)
Today in part one, Dirk and I also talk about how microeconomics and macroeconomics relate and are ultimately inseparable. We end with a question from Activist #MMT patron Chiel Harmsen, on the problems of the Eurozone and how to address them. Next week in part two, I ask Dirk questions circling around his new co-authored piece for the Gower Initiative, called Raising Interest Rates Is Like Blowing Up The Garden To Weed It. I start with some very basic questions about how and why central banks maintain stability of the payment system. I then ask him to describe the specific mechanics of how the central bank raising the overnight interest rate target results in millions becoming unemployed – and ultimately more exploitable.
And now, onto my conversation with Dirk Ehnts. Enjoy.
Ep129[2/2] Dirk Ehnts: Raising interest rates is like blowing up the garden to weed it https://youtu.be/hhgI7ubfXW4 https://make.headliner.app/project/fd8e62e9-db28-4b2b-9e3b-12cf0c765bc1
Welcome to episode 129 of Activist #MMT. Today's part two of my two-part conversation with Dirk Ehnts. Last week in part one, Dirk described his journey from a PhD in main stream economics to discovering and accepting MMT. Today, I asked question circling around his new co-authored piece for the Gower Initiative, called Raising Interest Rates Is Like Blowing Up The Garden To Weed It. It starts with some very basic questions about how and why the central bank maintains the stability of the payment system. I then ask the specific mechanics of the central bank's raising its overnight target rate, and how it ultimately results in millions more becoming unemployed – and therefore more exploitable. I continue to struggle with these concepts, but after this conversation, I feel like the questions have become more clear.
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And now, let's get right back to my conversation with Dirk Ehnts. Enjoy.