Abstract
In the last few years, the so-called Modern Monetary Theory (MMT) has been gaining prominence in the media and the public. This article presents the MMT approach to money and monetary policy, and discusses its recommendations regarding fiscal policy and aggregate demand management, the structural policies it advocates as well as the international aspects of MMT. Overall, it appears that MMT is based on an outdated state of economic science and that its claims regarding economic policies are much exaggerated: The meaning of MMT is more that of a political manifesto than of a genuine economic theory.
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Françoise Drumetz, Banque de France; and Sciences Po, Paris, France.
Christian Pfister, Paris 1 Panthéon Sorbonne; and Sciences Po, Paris, France.
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Open Access: This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/).
Open Access funding provided by ZBW — Leibniz Information Centre for Economics.
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Drumetz, F., Pfister, C. Modern Monetary Theory: A Wrong Compass for Decision-Making. Intereconomics 56, 355–361 (2021). https://doi.org/10.1007/s10272-021-1014-5
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DOI: https://doi.org/10.1007/s10272-021-1014-5