Laying the Groundwork for Modern Monetary Theory Modern Monetary Theory (MMT) has emerged as a prominent economic framework that challenges conventional wisdom regarding government spending, deficits, and debt. The theory posits that real and ecological limits, instead of financial limits, constrain government spending. MMT emphasises that monetarily sovereign governments can create money electronically and are not financially constrained. This paper aims to provide an overview of MMT's key concepts and discuss its implications in the political economy, highlighting how MMT's ideas intersect with the political system.
Laying the Groundwork for Modern Monetary Theory
Laying the Groundwork for Modern Monetary…
Laying the Groundwork for Modern Monetary Theory
Laying the Groundwork for Modern Monetary Theory Modern Monetary Theory (MMT) has emerged as a prominent economic framework that challenges conventional wisdom regarding government spending, deficits, and debt. The theory posits that real and ecological limits, instead of financial limits, constrain government spending. MMT emphasises that monetarily sovereign governments can create money electronically and are not financially constrained. This paper aims to provide an overview of MMT's key concepts and discuss its implications in the political economy, highlighting how MMT's ideas intersect with the political system.