Wednesday, March 17, 2021


 What exactly is Modern Monetary Theory (MMT) and why is it getting so much attention?

An investor gets excited about MMT. As our economies fail, and Covid stresses it more, MMT may be just the ticket, says, Tyler Mordy, a Chief Executive Officer, especially as increased government spending since 2008 has failed to increase inflation, i.e, the quantitive easing and massive amounts spent on Covid relief. It seems that the old economic model was wrong. 

All of which brings us to today. Globally, almost USD $12 trillion in monetary and fiscal support has been pumped into the economy to fight the impact of Covid-19, leading to soaring budget deficits and public sector debt in all major economies. Have governments done too much? Apparently not. The world has been stuck with inflation stubbornly below official targets and bond yields at new lows.

With this backdrop, it is no surprise that a global policy debate has been sparked. Why does recent experience seem to totally refute standard macroeconomic theory? And what, pray tell, is the right policy mix for the times?

Enter Modern Monetary Theory (MMT)... 


The [MMT] policy potential is near limitless. Kelton imagines a lofty and near-utopian world where millions of people have access to improved healthcare, advanced education, better pensions and world-beating infrastructure.

Ask Forstrong

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