You claim the “left has to have an answer to the potential inflationary consequences of operating at capacity/full employment”. Why is there any more of an obligation for the left to do this than there is for the political right to “have an answer for” the continued mass unemployment and poverty bring brought about their refusal to boost demand?
All MMTers and the “left” want is a return to the employment levels that obtained before the credit crunch. If those employment levels were feasible without excess inflation four years ago, they ought to be feasible now – unless the inflation / unemployment relationship has deteriorated in the meantime.
The only evidence I know of for such a deterioration is here:
http://economistsview.typepad.com/economistsview/2011/09/the-late-american-jobs-machine.html
But I wouldn’t expect the economically illiterate political right to spot or understand the latter. The arguments I hear from the political right are just plain moronic – Heritage Foundation, Peterson Institute, etc.
