Generate QR code
Open Access
Subscription Access
Hype around (non)monetary (non)theory
https://doi.org/10.32609/0042-8736-2019-9-112-122
Abstract
In 2019 the doctrine, called “Modern Monetary Theory” (MMT), broke into the political Olympus. Political, academic and financial circles in the USA, the United Kingdom and Australia are actively discussing what was previously unthinkable: the budget deficit does not matter, the money printing is able to close the gap between government spending and taxes without inflation pressuring and other well-known ideas presented in a new light. The strict criticism of MMT was voiced by the economists of all kinds, from Kenneth Rogoff and Lawrence Summers from Harvard University to Paul Krugman from the City University of New York. All of them claim that under the mask of a new theory simple left populism is hidden. Representatives of MMT believe that when their supporters win in the upcoming elections in the USA, they will open a new page in the history of economics and politics.
References
1. Connors L., Mitchell W. (2017). Framing Modern Monetary Theory. Journal of Post Keynesian Economics, Vol. 40, No. 2, pp. 239—259. https://doi.org/10.1080/01603477.2016.1262746
2. Coy P., Dmitrieva K., Boesler M. (2019). Warren Buffett hates it. AOC is for it. A beginner’s guide to Modern Monetary Theory. Bloomberg Businessweek, 21 March.
3. Dalio R. (2018). Principles for navigating big debt crises. Westport: Bridgewater.
4. IGM (2019). Modern Monetary Theory. University of Chicago Booth School of Business, 13.03. http://www.igmchicago.org/surveys/modern-monetary-theory
5. IMF (2019). Transcript of International Monetary Fund Managing Director Christine Lagarde’s opening press conference, 2019 Spring Meetings. 11 April. https://www.imf.org/en/News/Articles/2019/04/11/tr041119-transcript-managing-director-christine-lagarde-press-conference-2019-spring-meetings
6. Knapp G. (1905). Staatliche Theorie des Geldes. Leipzig: Duncker und Humblot.
7. Krugman P. (2019a). Running on MMT (Wonkish). The New York Times, 25 February.
8. Krugman P. (2019b). What’s wrong with functional finance? (Wonkish). The New York Times, 12 February.
9. Minsky H. (1965). The role of employment policy. In: M. S. Gordon (ed.). Poverty in America: Proceedings of a national conference held at the University of California, Berkeley, Feb. 26—28. San Francisco: Chandler Publishing Company, pp. 175—200.
10. Mitchell W. (1998). The buffer stock employment model and the NAIRU: The path to full employment. Journal of Economic Issues, Vol. 32, No. 2, pp. 547—555. https://doi.org/10.1080/00213624.1998.11506063
11. Mitchell W., Wray R., Watts M. (2019). Macroeconomics. London: Macmillan Education.
12. Nesiba R. (2013). Do institutionalists and post-Keynesians share a common approach to Modern Monetary Theory (MMT)? European Journal of Economics and Economic Policies: Intervention, Vol. 10, No. 1, pp. 44—60. https://doi.org/10.4337/ejeep.2013.01.05
13. Praet P. (2019). Twitter Q&A with Peter Praet. European Central Bank, 12.03. https://twitter.com/i/moments/1105523805248778246
14. Rogoff K. (2019). Modern monetary nonsense. Project Syndicate, March 4. https://www.project-syndicate.org/commentary/federal-reserve-modern-monetary-theory-dangers-by-kenneth-rogoff-2019-03
15. Samuelson P. (1990). Economics. New York: McGraw-Hill.
16. Stone J. (2015). Plough quantitative easing cash into building homes and infrastructure, says Jeremy Corbyn. The Independent, 9 July.
17. Tcherneva P. (2002). Monopoly money: The state as a price setter. Oeconomicus, Vol. 5, pp. 124—143.
18. Walsh B. (2018). Stephanie Kelton wants you to rethink the deficit. Barron’s, 13 September.
Review
For citations:
Moiseev S.R. Hype around (non)monetary (non)theory. Voprosy Ekonomiki. 2019;(9):112-122. (In Russ.) https://doi.org/10.32609/0042-8736-2019-9-112-122
Views:
3504
Email this article 
