The Empirical and Institutional Limits of Modern Money Theory

Gerald Epstein

Review of Radical Political Economics, 2020, vol. 52, issue 4, 772-780

Abstract: Modern Money Theory (MMT) economists acknowledge a number of empirical and institutional limitations on the applicability of MMT to macroeconomic policy, but they have not attempted to explore these empirically nor have they adequately addressed their implications for MMT’s main macroeconomic policy proposals. This paper identifies some of these important limitations, including those stemming from modern international financial markets, and argues that they are much more binding on the policy applicability of MMT than many of MMT’s advocates appear to recognize.

Keywords: modern money theory; monetary policy; fiscal policy; exorbitant privilege; full employment; public debt (search for similar items in EconPapers)
JEL-codes: E58 E61 E62 F42 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:52:y:2020:i:4:p:772-780

DOI: 10.1177/0486613420912464

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