I was at a conference on the economic crisis today at which nearly all the main speakers were US economists - including a student of Minsky Randal Wray, William K. Black and Stephanie Kelton, all MMT economists from Kansas.  There solution was that Ireland had no option but to default and withdraw from the Euro citing flaws in the Optimum Currency Area theory and the Maastricht Treaty.

I (rhetorically) asked the question why, given that our problem was primarily with Germany, we were inviting a bunch of US economists to provide a solution.  Where there no sane German economists we could build bridges with?  The not altogether convincing response from the Chair was that the German government had systematically prevented the preferment of sane economists and so none could be found.

I think I need a better explanation for the German Government pursuing policies which are demonstrably unsustainable and damaging to the entire Eurozone.  If I get time, I will try to write a summary diary on the MMT approach.  Chris Cook received a favourable mention from one of the Irish economists who spoke. The impression I got is that the Irish economic mainstream is starting to line up behind Morgan Kelly, having treated him as a pariah for so long.

Index of Frank's Diaries