Wednesday, October 9, 2019
TRNN - How Useful Is Modern Money Theory for Developing Countries?
MMT is gaining traction among progressives as an option for paying for massive government spending projects such as the Green New Deal. Even if it is useful for countries such as the U.S., can it be applied in developing countries? PERI's MatÃas Vernengo says only to a limited extent.
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It seems to me that everything he said was more-or-less orthodox mmt. Developing countries have less domestic productive capacity and therefore have to import necessary goods, meaning they have to either export to get the dollars necessary or make sure their currency is desirable in fx markets. The theory's the same, just the limits get placed in different spots.
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