Modern Monetary Theory and COVID-19 Crisis

Tihomir Domazet ()
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Tihomir Domazet: University for Peace—ECPD Established by UN

Chapter Chapter 11 in Macroeconomic Responses to the COVID-19 Pandemic, 2021, pp 291-317 from Springer

Abstract: Abstract Modern Monetary Theory (MMT) is part of post-Keynesian economics that summarize the money creation process as “loans create deposits” (banks) and “deposits create reserves” (central bank). MMT is distinguished from other approaches to macroeconomics because it synthesizes several traditions from heterodox economics focusing on describing monetary and fiscal operations in nations that issue a sovereign currency. The shift in interest pre-dates the COVID-19 crisis, but the virus has given MMT a huge boost—the world is on a crossroad that leads to a conclusion that exit strategy to the new global economics system is to be based on MMT.

Keywords: Post-Keynesian economics; Modern Money Theory (MMT); Sovereign currency; Fiat money; European Central Bank; B1; B2; E5 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-75444-0_11

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DOI: 10.1007/978-3-030-75444-0_11

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