Modern Monetary Theory: wrong ideas, real limits and blind spots. An overview of the critics

La Théorie Monétaire Moderne: idées fausses, vraies limites et angles morts. Un tour d’horizon des critiques

Guillaume l'Oeillet ()
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Guillaume l'Oeillet: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: Since the great financial crisis, the Modern Monetary Theory (MMT) rouses interests in political, media and academic area. In the ensuing Keynesian moment, the MMT has emerged from the confidentiality to advocate a permanent fiscal dominance in opposition to the consensus built toward a politically independent monetary policy. MMT has however been widely criticised by mainstream economists but also by the post-keynesian school from which it comes. The most vehement attacks to deny the scientific nature of the theory and to confine it to a political movement belonging to the left wing of the US democrats. More sophisticated critics tackle theorical foundation and empirical evidences of the MMT to contest their recommendations. This paper provides an overview of those critical points of view and contributes to the chorus of criticism by raising a failing political economy.

Keywords: Modern Monetary Theory; Fiscal dominance; Monetary economics; Political Economy; Théorie Monétaire Moderne; Dominance budgétaire; Monnaie; Economie politique (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-his and nep-hme
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Published in Revue d'économie financière, 2022, Après le Brexit / Post Brexit, 148 (4), pp.249-272. ⟨10.3917/ecofi.148.0249⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03854814

DOI: 10.3917/ecofi.148.0249

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