A Skeptic’s Guide to Modern Monetary Theory
- 1 May 2020
- journal article
- Published by American Economic Association in AEA Papers and Proceedings
- Vol. 110, 141-144
- https://doi.org/10.1257/pandp.20201102
Abstract
This essay discusses a new approach to macroeconomics called modern monetary theory (MMT). It identifies the key differences between MMT and the approach found in mainstream textbooks. It concludes that while MMT contains some kernels of truth, its most novel policy prescriptions do not follow cogently from its premises.Keywords
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