Philip Armstrong
Nick Potts
Solent University, Southampton, UK
Published online 13th August 2020
Abstract
In these extraordinary times it might just be that heterodox economics gets a hearing; if only to justify government actions ruled impossible or, at least undesirable, by mainstream economics in normal times; it is back to the 2008 future all over again, big-time. So, if economics were to descend from its ‘theological heights’ (and preaching only that which suits elite vested interests), then what are we to say? This article utilises alternative theoretical lenses to underpin views of fiscal and monetary policy and the case for state banking. It also expresses an opinion as to which capital is worth saving, post-crisis. More generally, we consider if advanced nations should aim to be more self-sufficient in the future and if so, how might developing countries fit into a new order? We are not prophets or salespeople, so we merely seek to provide some economic theory that can help us understand these issues. The theories we apply are Modern Monetary Theory and the Temporal Single System Interpretation of Marx (which argues that his value theory is consistent and not redundant, in fact invaluable to understanding capitalism). Space will not permit us to drag up endless academic debates on the acceptability of the TSSI of Marx or MMT, and for once, in the face of crisis, we hope we may be spared from abiding by the rules of the club.
(218 words).
Keywords: Covid crisis, Marx, MMT.