I take the following as given:
- Contemporary heterodox economists are continuing communities that have been around for generations in leading universities. And they are and have been publishing in scholarly peer reviewed journals.
- Many in these communities accept theories of endogenous money, that a central monetary authority cannot control the quantity of money in use in the economy.
- Many in these communities reject the loanable funds theory of interest in all runs. Interest rates cannot be explained by the interaction of supply and demand, savings and investment.
- These perspectives are not taught in mainstream textbooks (which are almost all a matter of shedding darkness).
Nick Rowe demonstrates the truth of the last proposition while pretending the opposite. To appreciate Rowe's refusal to honestly state that he and the mainstream textbooks do not teach the existence of the heterodox perspectives on money I list above, one must read the comments to the linked post. For example, Nick Rowe states, "The idea that banks just act as intermediaries between savers/lenders and spenders/borrowers is about long run equilibrium." Nowhere does he state that this idea is controversial.
One sees a lot of other ignorance and stupidity on display in the comments:
- One W. Peden pretends that a "majority" of heterodox critiques of economics are, like climate change denialism, "by outsiders to the discipline".
- Ian Lippert pretends "there is [an] unified methodology to ... microeconomics", even though commentators earlier in the thread demonstrated that heterodox economists severely criticize microeconomics, just as well as macroeconomics.
- DavidN also pretends that "micro and the various subfields" do not get critiques from the heterodox.
- Stephen Gordon, after being told more than once of specific political programs associated with Modern Monetary Theory (MMT), such as a program for an Employer of Last Resort (ELR), continues to pretend MMT has "No policy implications/recommendation". (For his gross stupidity and illiteracy, he owes the commentator DeusDJ an apology.)