A New Perspective: Key Concepts of Modern Monetary Theory
darrenquinn.substack.com
The previous blog post delved into the research questions and literature surrounding Modern Monetary Theory (MMT). In this instalment, we aim to explore the normative assumptions in mainstream economics, such as New Keynesianism, and how MMT provides an alternative perspective on these assumptions. We will examine the reconceptualization of money proposed by MMT and the controversy surrounding the claim that sovereign currency issuers face no financial constraints on spending. Additionally, we will discuss the concept of monetary sovereignty and the debates regarding the constraints that still apply. By analysing these aspects we aim to highlight the key differences between mainstream economics and MMT.
A New Perspective: Key Concepts of Modern Monetary Theory
A New Perspective: Key Concepts of Modern…
A New Perspective: Key Concepts of Modern Monetary Theory
The previous blog post delved into the research questions and literature surrounding Modern Monetary Theory (MMT). In this instalment, we aim to explore the normative assumptions in mainstream economics, such as New Keynesianism, and how MMT provides an alternative perspective on these assumptions. We will examine the reconceptualization of money proposed by MMT and the controversy surrounding the claim that sovereign currency issuers face no financial constraints on spending. Additionally, we will discuss the concept of monetary sovereignty and the debates regarding the constraints that still apply. By analysing these aspects we aim to highlight the key differences between mainstream economics and MMT.