Conclusion: the challenges ahead

L. Randall Wray ()

Chapter 12 in Understanding Modern Money Theory, 2025, pp 292-303 from Edward Elgar Publishing

Abstract: This chapter argues that while MMT is best known for its careful description of fiscal policy operations and for policy proposals such as the Job Guarantee, it is above all a theory of the role money plays in the capitalist economy. This book places MMT within the heterodox monetary theory of production and argues that MMT provides new insights into the nature of money and the role it plays in the modern economy. In particular, MMT integrates the heterodox endogenous credit money and chartalist state money approaches to reveal that finance is never a limiting factor—rather, real resources and know-how are the constraints. The many challenges we face today—including rising inequality, secular stagnation, climate catastrophe, and rising prospects for nuclear war—are more easily tackled if we understand the economic possibilities that can be made available by unleashing the full financial capabilities of the modern sovereign state.

Keywords: Monetary theory of production; Fundamental flaws of capitalism; Paradigm; Stability is destabilizing; Financialization; Money Manager Capitalism (search for similar items in EconPapers)
Date: 2025
ISBN: 9781800375147
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