An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
The Kornai article just after Fe Chengyu article at Batson's blog describes the soft budget constraint (similar to MMT's concept) as opposed to a hard budget constraint (debt limit, deficit, current account balance). Every MMT advocate should use this way of thinking about productivity, wealth and surpluses when describing MMT's soft-budge view on real resource and labor constraints. It's brilliant.
Yes, very interesting. I had not heard of Janos Kornai.
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