The article is behind a paywall, but I have found that the FT let's you read an article once before the paywall comes up. Whether this is intentional or a quirk in the system, I don't know?
The article was saying that MMT had got the ECB chiefs thinking about how they could print money to help failing states without giving a free ride to the bond markets. They said that printing money would not cause inflation in an economy that is in deflation.
So, MMT is now being taken seriously by the ECB chiefs, well, at least some of it's theories.
The FT article said that MMT is associated with the left.
Anyway, try the link and see if you are able to get in the first time like I did this morning, unless I was just lucky again.
FT - Modern monetary theory offers insights into the eurozone
https://www.ft.com/content/97cdd71c-7d3e-11e9-81d2-f785092ab560
3 comments:
Here is the archived version
"MMT-ers point out repeatedly that (...) if private markets were unwilling to buy US government bonds, the US could print money to finance any activity. (...) This assumes, of course, that the Federal Reserve either co-operates or loses independence — which is plausible in many extreme scenarios, such as a war or a financial crisis."
Neither cooperation nor loss in independence is strictly needed (although it would be better). You just need a Fed with the mandate of keeping some interest rate level, and the correct mechanisms to do so, including bond buying, repo operations and remunerated bank reserves.
"As “super Mario” approaches retirement this November, it highlights the importance of his legacy. (...) He may have saved the eurozone not once, but twice."
Someone who calls Draghi a savior is either profoundly ignorant or too much aligned with his own self interest...
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