The Political Alchemy Called Modern Monetary Theory

Source: Ludwig von Mises Institute
by Per Bylund

“The new kid on the economics block is something called modern monetary theory. The name is new, but the ‘theory’ is not. Proponents adamantly claim that it is both new and a theory of economics. To make it appear this way, they dress the ideas in unusual-sounding jargon and use rhetorical tricks. … [T]he MMT story does not seem to relate at all to the real economy. It is pure magic: more currency means more jobs, greater government services, a higher standard of living. Does this mean MMT simply ignores the fact that the actual economy is a matter of allocating scarce resources toward valuable ends? Not quite. It only greatly downplays this fact by ignoring much of the implications.” (09/14/21)