Full Description
This Palgrave Pivot assesses the validity of Modern Money Theory's approach to macroeconomic policy, specifically monetary and fiscal policy. Whereas other papers have focused primarily on theoretical and doctrinal issues, this book focuses primarily on an analysis of MMT's policy approach. Though drawing on academic literature, this book's approach is empirical and policy-based, making it accessible to scholars and the public alike. It addresses a burning question in the policy and politics of the US and elsewhere where MMT is gaining a policy foothold, especially among progressive activists and politicians: Is MMT, in fact, a good guide for progressive macroeconomic policy? The main focus of this book is to explain why the answer to this question is no.
Contents
1.- Introduction: Strange Bedfellows and the Rise of Modern Money Theory.- 2. MMT Basics and the Sustainability of Money Financed Deficits.- 3. Institutional Specificity and the Limited Policy Relevance of Modern Money Theory.- 4. The Role of the Dollar as an International Currency and Its Limits in a Multi-Key Currency World.- 5. MMT as "America First" Monetary Policy and Its Costs.- 6. The Mystery of the Missing Minsky: Financial Instability as a Constraint on MMT Macroeconomic Policy.- 7. An MMT Free Lunch Mirage Can Lead to Perverse Outcomes: Fight Your Friends, Spare Your Enemies.- 8. Conclusion: Contours of a Progressive Macroeconomic Policy.
