The Conscience of a Neo-Liberal

10 Pages Posted: 30 Mar 2011

See all articles by Scott T. Fullwiler

Scott T. Fullwiler

Wartburg College; Bard College - The Levy Economics Institute

Date Written: March 30, 2011


Paul Krugman's critique of MMT is based on three incorrect assumptions about what MMT policy proposals actually are; it also demonstrates a lack of understanding of our modern monetary system (as is generally verified by volumes of empirical research on the monetary system by both MMT’ers and non-MMTer’s). While MMT’ers argue that all three assumptions made by Krugman are false, one does not need to necessarily agree. The point is that to critique MMT on the basis of assumptions that are inconsistent with MMT is to actually not critique MMT at all. It is a straw man. I explain these assumptions and how they relate to Krugman’s two posts as I go through the text of both.

Keywords: Modern Monetary Theory, monetary operations

JEL Classification: E4, E5, H6

Suggested Citation

Fullwiler, Scott T., The Conscience of a Neo-Liberal (March 30, 2011). Available at SSRN: or

Scott T. Fullwiler (Contact Author)

Wartburg College ( email )

222 Ninth St. NW
Waverly, IA 50677
United States

Bard College - The Levy Economics Institute ( email )

Annandale-on-Hudson, NY 12504-5000
United States

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