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Is money the creation of the state or the market? (On the “modern monetary theory” as described in the textbook by W. Mitchell, L. R. Wray and M. Watts “Macroeconomics”)
https://doi.org/10.32609/0042-8736-2020-6-121-134
Abstract
In 2019, a textbook “Macroeconomics” was published in London, on the pages of which the authors presented a new monetary doctrine — Modern Monetary Theory, MMT, — an unorthodox concept based on the postulates of Post-Keynesianism, New Institutionalism, and the theory of Marxism. The attitude to this scientific concept in the scientific community is ambiguous. A smaller part of scientists actively support this doctrine, which is directly related to state monetary and fiscal stimulation of full employment, public debt servicing and economic growth. Others, the majority of economists, on the contrary, strongly criticize MMT, arguing that the new theory hides simple left-wing populism, designed for a temporary and short-term effect. This article considers the origins and the main provisions of MMT, its discussions with the mainstream, criticism of the basic tenets of MMT, and also assesses possible prospects for the development of MMT in the medium term.
Keywords
public debt,
monetary policy,
macroeconomics,
fiscal policy,
modern monetary theory,
sovereign money,
private money,
central bank
JEL: B22, E31, E52, E58, E62
About the Author
S. A. Andryushin
Institute of Economics, RAS
Russian Federation
Russian Federation
Sergey A. Andryushin
Moscow
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For citations:
Andryushin S.A. Is money the creation of the state or the market? (On the “modern monetary theory” as described in the textbook by W. Mitchell, L. R. Wray and M. Watts “Macroeconomics”). Voprosy Ekonomiki. 2020;(6):121-134. (In Russ.) https://doi.org/10.32609/0042-8736-2020-6-121-134
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