It's All MMT: The Fraud Of "Monetary Policy"

 People may not appreciate some MMTers claiming what they do about inflation, government spending, full employment, and debt; yet politicians and monetary bureaucrats sure seem to act like they believe MMT. MMT correctly observes that government-through a balance of taxation, deficit spending, inflation, and monetary policy-attempts to centrally control an economy and does direct real resources toward its ends.

Is this above statement not basically a statement of the goals of MMT? Other economic schools of thought that accept the underlying presuppositions of the necessity of monetary policy are not fundamentally in disagreement with MMT on this point; in fact, they are in fundamental agreement.

This undermines the ability of these schools to effectively deliver a fundamental critique of MMT rather than just disagreements about how and to what extent monetary policy is to be utilized.

The existence of MMT is effectively a reductio ad absurdum of so-called monetary policy.

MMT reasonably asks: What if we did more of the same? Obviously, the degree to which something is done can be critiqued without abandoning the whole thing, but the flawed assumptions are twofold: that there is "Just the right amount" of monetary policy and that there are certain enlightened experts who know what it is and only need monopoly over the money supply to achieve it.

Whether MMT or otherwise, proponents of so-called monetary policy essentially believe that money is a policy instrument to be wielded by government elites to rearrange prices, resources, and the structure of production contrary to the demonstrated preferences of millions of individuals.

Instead, we ought to abandon the fraud of monetary policy and heed the words of F.A. Hayek concerning the results of monetary policy that led to America's Great Depression: "We must not forget that, for the last six or eight years [up to 1932] monetary policy all over the world has followed the advice of the stabilizers. It is high time that their influence, which has already done harm enough, should be overthrown."

https://mises.org/mises-wire/its-all-mmt-fraud-monetary-policy