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There's Much Ruin in a Nation: An Analysis of Modern Monetary Theory.
- Source :
- Atlantic Economic Journal; Mar2020, Vol. 48 Issue 1, p11-21, 11p, 1 Chart, 2 Graphs
- Publication Year :
- 2020
-
Abstract
- This paper analyzes the first macroeconomic textbook based on modern monetary theory (MMT) written by Mitchell, Watts and Wray. MMT is a heterodox theory that a government need not worry about budget and monetary constraints and excessive inflation until a country achieves its goals of full employment, first-class healthcare for all citizens, and other desirable policies. Their textbook, Macroeconomics, leaves out major sections that are standard in macroeconomic textbooks, such as AS-AD analysis and economic growth theory. I argue that MMT is a dangerous theory that can lead to a bloated government, runaway inflation, and slow growth. Furthermore, MMT is unnecessary given that many advanced economies have moved in the opposite direction and achieved full-employment growth without adopting MMT, such as Sweden, Canada, Singapore, and Chile. [ABSTRACT FROM AUTHOR]
- Subjects :
- MONETARY theory
ECONOMICS
HETERODOX economics
MACROECONOMICS
ECONOMIC development
Subjects
Details
- Language :
- English
- ISSN :
- 01974254
- Volume :
- 48
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Atlantic Economic Journal
- Publication Type :
- Academic Journal
- Accession number :
- 143073491
- Full Text :
- https://doi.org/10.1007/s11293-020-09651-9