Modern Monetary Theory in Historical Perspective

Craig Medlen and Zelin Chen

Journal of Economic Issues, 2023, vol. 57, issue 1, 241-256

Abstract: We argue that Modern Monetary Theory is an imaginative lens as well as theory. Its emphasis on the advantages of sovereignty in reference to money creation and government spending derives its current political attraction from a variety of collectivist issues pertaining to the environment, health, education and job security. It derives its current economic relevance from two modern historical conditions: (1) the long-term stagnation of investment growth begun in the late 1960s and early 1970s; (2) the combination of automation and globalization that has weakened labor and dampened inflationary pressures in the advanced capitalist world. Discussion of these two issues allows for historical contrast with Abba Lerner’s Functional Finance in which MMT traces part of its’ origins. MMT’s outlook, however, could be much improved by a more robust analysis of the relationship between fiscal means and inequality.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/00213624.2023.2170135 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:jeciss:v:57:y:2023:i:1:p:241-256

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MJEI20

DOI: 10.1080/00213624.2023.2170135

Access Statistics for this article

More articles in Journal of Economic Issues from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().