Modern Monetary Theory: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page. Sources: CASS working paper 6 April 2020 file:///C:/Users/Doug/Downloads/SSRN-id3569416.pdf, Economics Help webpage https://www.economicshelp.org/blog/162341/economics/modern-monetary-theory-mmt-explained/) |
imported>Doug Williamson (Add link.) |
||
| Line 3: | Line 3: | ||
(MMT). | (MMT). | ||
MMT is an unorthodox economic theory that suggests that central banks and policy makers can be relatively relaxed about government deficits. | MMT is an unorthodox economic theory that suggests that central banks and policy makers can be relatively relaxed about government deficits and borrowing levels. | ||
The reason being, in simple terms, that they can create more fiat money without any theoretical limit. | The reason being, in simple terms, that they can create more fiat money without any theoretical limit. | ||
| Line 14: | Line 14: | ||
* [[Central bank]] | * [[Central bank]] | ||
* [[COVID-19]] | * [[COVID-19]] | ||
* [[Deficit]] | |||
* [[Fiat money]] | * [[Fiat money]] | ||
* [[Fiscal policy]] | * [[Fiscal policy]] | ||
Revision as of 02:54, 27 January 2021
Monetary policy - unconventional monetary policy.
(MMT).
MMT is an unorthodox economic theory that suggests that central banks and policy makers can be relatively relaxed about government deficits and borrowing levels.
The reason being, in simple terms, that they can create more fiat money without any theoretical limit.
As a consequence, under MMT, monetary and fiscal policy should focus primarily on full employment and price stability.
