Economics, Econometrics and Finance
4 years ago

Modern Money Theory blurs understanding of money, risking economic catastrophe

RePEc: Research Papers in Economics
Modern Money Theory, by defining money as state-issued debt instrument, failed to provide sufficient spending for securing full employment; but succeeded in blurring our understanding of money
Naba Kumar Adak

Paper Summary

The article criticizes Modern Money Theory for failing to provide enough money for full employment and for confusing our understanding of money. It combines old, discarded theories and claims money is just a state-issued debt instrument. Following MMT blindly could lead to economic collapse. The MMT is impractical and unhelpful in real-world economics.

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