Modern Monetary Theory: A Wrong Compass for Decision-Making
Abstract In the last few years, the so-called Modern Monetary Theory (MMT) has been gaining prominence in the media and the public. This article presents the MMT approach to money and monetary policy, and discusses its recommendations regarding fiscal policy and aggregate demand management, the stru...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Springer
2021-12-01
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| Series: | Intereconomics |
| Online Access: | https://doi.org/10.1007/s10272-021-1014-5 |
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| _version_ | 1841525597911646208 |
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| author | Françoise Drumetz Christian Pfister |
| author_facet | Françoise Drumetz Christian Pfister |
| author_sort | Françoise Drumetz |
| collection | DOAJ |
| description | Abstract In the last few years, the so-called Modern Monetary Theory (MMT) has been gaining prominence in the media and the public. This article presents the MMT approach to money and monetary policy, and discusses its recommendations regarding fiscal policy and aggregate demand management, the structural policies it advocates as well as the international aspects of MMT. Overall, it appears that MMT is based on an outdated state of economic science and that its claims regarding economic policies are much exaggerated: The meaning of MMT is more that of a political manifesto than of a genuine economic theory. |
| format | Article |
| id | doaj-art-1aaa1342bbaf44e9a7ca4ad16b100244 |
| institution | Kabale University |
| issn | 0020-5346 1613-964X |
| language | English |
| publishDate | 2021-12-01 |
| publisher | Springer |
| record_format | Article |
| series | Intereconomics |
| spelling | doaj-art-1aaa1342bbaf44e9a7ca4ad16b1002442025-01-17T08:34:12ZengSpringerIntereconomics0020-53461613-964X2021-12-0156635536110.1007/s10272-021-1014-5Modern Monetary Theory: A Wrong Compass for Decision-MakingFrançoise Drumetz0Christian Pfister1Microeconomic and Structural Research, Banque de FranceDirectorate General Statistics, Banque de FranceAbstract In the last few years, the so-called Modern Monetary Theory (MMT) has been gaining prominence in the media and the public. This article presents the MMT approach to money and monetary policy, and discusses its recommendations regarding fiscal policy and aggregate demand management, the structural policies it advocates as well as the international aspects of MMT. Overall, it appears that MMT is based on an outdated state of economic science and that its claims regarding economic policies are much exaggerated: The meaning of MMT is more that of a political manifesto than of a genuine economic theory.https://doi.org/10.1007/s10272-021-1014-5 |
| spellingShingle | Françoise Drumetz Christian Pfister Modern Monetary Theory: A Wrong Compass for Decision-Making Intereconomics |
| title | Modern Monetary Theory: A Wrong Compass for Decision-Making |
| title_full | Modern Monetary Theory: A Wrong Compass for Decision-Making |
| title_fullStr | Modern Monetary Theory: A Wrong Compass for Decision-Making |
| title_full_unstemmed | Modern Monetary Theory: A Wrong Compass for Decision-Making |
| title_short | Modern Monetary Theory: A Wrong Compass for Decision-Making |
| title_sort | modern monetary theory a wrong compass for decision making |
| url | https://doi.org/10.1007/s10272-021-1014-5 |
| work_keys_str_mv | AT francoisedrumetz modernmonetarytheoryawrongcompassfordecisionmaking AT christianpfister modernmonetarytheoryawrongcompassfordecisionmaking |