Comments on: Addressing the Pandemic in the Philippines Necessitates a New Economic Paradigm

By: All in the name of National Interest | The Society of Honor: the Philippines

Fri, 09 Apr 2021 01:37:27 +0000

[…] In the academic circles, Bon Juego wrote about what is good about MMT, and it could be a powerful tool during this pandemic. […]

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By: Addressing the Pandemic in the Philippines Necessitates a New Economic Paradigm | The World Financial Review

Sun, 28 Feb 2021 01:01:56 +0000

[…] The article was first published in the �� […]

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By: chemrock

chemrock — Tue, 29 Dec 2020 04:59:14 +0000

Hi Bonn
Thanks for breaking up your comments, apparently to make it easier for responding. I’ll try to digest what you are saying and reply if appropriate.
But just to understand, I’m not too keen to go into high abstracts.

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 16:25:43 +0000

6. If you’re primarily interested about MMT for implementation in the Philippines, please follow this group who knows much more about its viability for contemporary Philippine government, economy and society: .

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 16:20:11 +0000

5. The scope and extent of the socio-economic proposal of the article is much broader (in fact, more radical) than just the rather limited macroeconomic strategy of MMT.

Above all, it sketches out and calls for a ‘paradigm shift’ for present-day Philippines because “a radical political strategy with a new economic paradigm for post-pandemic reconstruction is needed.”

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 16:13:06 +0000

4. There is an obvious power asymmetry in the relationship between a government and an individual citizen — hence, the latter can only afford to be critical (not condescending) towards the former.

Still, I think, overall the article offers analysis, critique, proposals and alternatives.

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 16:04:39 +0000

3. About the relationship between the Central Bank and Treasury, recall that in the Philippine government set-up, the Bureau of Treasury is under the Executive’s Department of Finance.

MMT proponents would like a merger between the Central Bank and the Treasury functions. In particular, this means that: the Central Bank does not only do monetary policy, but also fiscal policy; and the Treasury/DOF does not only do fiscal policy, but also monetary policy.

The key here is policy coordination. As suggested in the article, the BSP should be reoriented and restructured: “On top of adopting the perspectives of state money, labour and democracy, there is need to redefine the role and restructure the responsibilities of the central bank in a way that contributes to a coordinated economic and social reform process—specifically to strengthen the domestic industry, manage the terms of trade, and institutionalize redistributive welfare programmes… ‘Inflation targeting’ should not be BSP’s primary regulatory function and monetary policy goal.”

Inflation issue (which is traditionally dealt with by the Central Bank) will have to be managed through taxation (which is traditionally the function of DOF/Treasury).

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 15:50:15 +0000

2. I am for economic democracy, which includes the principle of monetary sovereignty and the democratization of money. The macroeconomics of MMT can be accommodated by any type of regime across the political spectrum. Even autocrats and dictators can do MMT. Thus, it’s my normative suggestion that budgetary allocation be done through/with congressional oversight in the spirit of representative democracy.

The Executive proposes to Congress the budget expenditures and allocations of the government for its economic priorities. Operating within the framework of MMT, both the Executive and Legislative offices would understand that the national development plan is not limited by tax revenues — but they should be mindful of the limits of the country’s real resource constraints (human, labor, natural, technological, etc.) as well as existing foreign debt.

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By: Bonn Juego

Bonn Juego — Mon, 28 Dec 2020 15:34:19 +0000

1. The article is a commentary of current events. It’s informed by reality-based economics — as such, relevant, appropriate and effective economic strategies and policies depend on context, initial conditions, mission and objectives. It offers a heterodox development alternative for the country – and for the incumbent administration to consider – at this historic juncture because “The current mainstream approaches to resolve the pandemic and the multiple crises of capitalism would fail to address the convoluted historical process of maldevelopment of the Philippines.”

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By: chemrock

chemrock — Thu, 24 Dec 2020 03:07:16 +0000

In reply to Bonn Juego.

Whilst you pointed the condescending finger at me, I note too your view of the Duterte admin is in somewhat similar mode.

Too bad you do not wish to engage. I thought we could have a running Q&A and have a mutual gain in better understanding MMT on the practical aspects, which is one perspective I noticed that MMTers understandably do not wish to expound.

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