Episode notes
Monetary and fiscal policy have undergone dramatic changes since Covid-19, and movement towards Modern Monetary Theory has accelerated in the U.S.. Economics as a profession still views the theory as heterodox and has largely left it alone to “die on the vine” as it were. Because MMT is a bit of an intellectual curiosity and is politically advantageous to both the democrats and the republicans, it is gaining momentum in an applied context. Because conservatives and libertarians want to be left alone and to leave others alone, they have too often been apathetic to the weeds growing in their gardens.
I argue that the inflation we have seen over the past few years will not be anomalous in the next two decades. It is the result of MMT slowly taking hold. This talk is designed to provide an overview of the primary assumptions of MMT and untangle ...
... Read more