MMT's explanation for currency demand: The Modern Monetary Theory's argument for currency demand beyond tax liabilities was challenged, requiring further development according to a peer-reviewed critique.
The Modern Monetary Theory (MMT) championed by Stephanie Kelton and others, which argues that government currency has value because it must be used to pay taxes, was challenged by an economist who questioned the sufficiency of this explanation for currency demand beyond tax liabilities. The economist, in a public academic exchange, posed the question to Kelton and was challenged to find the hole in a more elaborate argument by another MMT advocate, L. Randall Ray. After reading and responding to Ray's article, the economist published a peer-reviewed article in the Quarterly Journal of Austrian Economics, offering a critique and additional validation of the argument that MMT's explanation for currency demand beyond tax liabilities needs further development.
Kelton's academic silence: Economist Rayan Kelton has not responded to a year-old critique of her work, despite attempts to engage her in academic debate, and her blocking the author on Twitter adds to the significance of the exchange
Rayan Kelton, an economist known for her advocacy of Modern Monetary Theory (MMT), has yet to respond to a critique of her work published over a year ago. The author of the critique reached out to Kelton multiple times to ensure she was aware of the response, but received no acknowledgement or counterargument. Kelton's academic silence on the matter is notable given that she had publicly challenged another university professor to engage with her ideas. The absence of a response from Kelton, coupled with her blocking the author on Twitter and the publication of a counter-argument in a different journal, adds to the importance of the academic exchange and Kelton's responsibility to engage in a meaningful academic debate. The world is still waiting for Kelton to defend her argument from the requested critique.
Is Stephanie Kelton Failing Her Academic Responsibility?
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