It’s Wednesday and we have the music feature to enjoy following some other news snippets. Here is an argument: Modern Monetary Theory (MMT) tells us that when there are fiscal deficits there is no problem with inflation. At present, inflation has been rising and there are deficits left over from the pandemic. Therefore “Tick off a loss for the modern monetary theorists amid rising inflation” because “Under MMT, the risk of inflation is considered minimal as governments that fully control their fiat currencies are believed to be able to control price levels”. Okay? So I think I better just terminate this blog today, say sorry for being so stupid, and start writing Op Eds demanding interest rates rise and governments cut their fiscal deficits immediately. But I won’t. Why? Because I am not stupid enough to mount that argument in the first place like some, who have the audacity to write financial columns that only demonstrate their ignorance. Good. Let’s have some music....Bill Mitchell – billy blog
Apparently, MMT says there are no inflationary threats – which planet?
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia
http://bilbo.economicoutlook.net/blog/?p=49540
Here is one of those analysts that thinks MMT has failed. It is pretty representative. Mercifully, it is short. Apparently, he concludes that MMT can be dismissed with the back of the hand. It's hardly the worst. I just saw one at Seeking Alpha holding that MMT comes from the ECB (ROFLMAO).
'Verdict is in' on modern monetary theory, strategist says
Ihsaan Fanusie
https://finance.yahoo.com/news/verdict-is-in-on-modern-monetary-theory-strategist-says-194714165.html
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