Putting modern monetary theory to the test

yen-japan

Modern monetary theory is suddenly in the spotlight after US congresswoman Alexandria Ocasio-Cortez stressed its importance as a means of boosting public spending for education and medical services earlier this year.1

The basis of MMT is that governments never need default on their own currency-denominated debt and thus spending should be increased to achieve full employment and price stability without worrying about rises in the fiscal deficit and public debt.2 Another feature of MMT is that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: