This story is going viral on the Internet.
From CNBC's website:
Turns out it's not just the Economist magazine and econ bloggers that are using Modern Monetary Theory. An independent Wall Street broker-dealer has been using it for their economic forecasts.
From a press release on MarketWatch:
John Thomas Financial successfully incorporated Modern Monetary Theory (MMT) into their economic forecasts last year, producing exceptional forecasting results.
Modern Monetary Theory, or MMT as it is frequently referred to, is an economic school of thought developed in the mid 1990s that describes governments and economies, which operate under fiat money systems where there is no convertibility or fixed rate of exchange.
Governments that operate under fiat systems need not be constrained in their spending because they are the monopoly issuers of the currency.
As such they are not dependent on taxes or borrowing for revenue and the central bank and fiscal authority, together, act to set interest rates, not the market.
"Because of our more accurate understanding of the monetary system we were able to correctly forecast such things as GDP growth, stock prices, interest rates, currencies and commodities while others got these markets very wrong," said Mike Norman, John Thomas Financial's Chief Economist.
Read rest here.