Modern Monetary Theory: the good, the bad and the ugly

Marc Lavoie

Chapter 5 in Post Keynesian Economics, 2024, pp 71-88 from Edward Elgar Publishing

Abstract: This chapter discusses three themes related to Modern Monetary Theory (MMT). First, there is an appraisal of the difficult relationship between MMT authors and their critics, in particular those from the post-Keynesian school. The second section recalls the major contributions of MMT authors, notably their detailed analysis of the clearing and settlement system, as well as the large influence that MMT authors have had on public discourse, reigniting the interest for functional finance, and forcing mainstream authors as well as central bankers to respond to the main MMT claims. The third section discusses some of the more controversial views of MMT, such as the assumption that the government and the central bank can be consolidated as a single institution because their actions need to be coordinated, or the claim that a government cannot default if its debt is issued in the domestic currency, whatever the institutional set-up.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781803922232.00009 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:21513_5

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().