Yves Smith — The Fed’s Exit Problem: Symptom of Paradigm Breakdown?

Yves Smith explains why an alternative solution like MMT is unlikely to be adopted until the system breaks down.

The incumbents are simply unwilling to risk, both politically and economically, the degree of intervention needed to come up with or even ease the way to a new set of institutional arrangements. Ideas like a jobs guarantee, which would be far more salutary than a lot of other alternatives, are dismissed as too far out to even get a serious hearing. The authorities have done an impressive job of keeping a badly impaired system limping along, and it might even have periods of credible-looking improvement. But as Herbert Stein said, “If something cannot go on forever, it will stop.” So the end game seems inevitable, even if the timing is unclear.

Naked Capitalism
The Fed’s Exit Problem: Symptom of Paradigm Breakdown?
Yves Smith