Stephen Grenville - Modern Monetary Theory and mainstream economics converging

When MMT started to gain acceptance in some parts of the mainstream, the neoclassical economists fiercely fought back, but now it looks like they are finally losing the debate. More and more people are now prepared to give it a try because they think it looks feasible. 

7. Conclusion

MMT proponents must feel that their moment has arrived at last. The core elements of their proposal are being more widely accepted by mainstream economists and now, with COVID, being put into practice. Big deficits are being rolled out everywhere, partly funded by central bank money creation. Debt hawks and inflation alarmists have largely gone silent, and the bond-market vigilantes are no-where to be seen. The MMT promise of free funding for deficits has turned out to be almost true because interest rates are so low and expected to remain so for the foreseeable future. Their view that inflation is caused by running the economy ‘too hot’, rather than by excessive money creation, is now more widely accepted.

Eureka Report 

Stephen Grenville - Modern Monetary Theory and mainstream economics converging