What modern monetary theory is, and what it is not

Modern monetary theory (MMT) has grown in popularity in recent years. Several central bankers have made passing comments about it. However, the publication of two papers by Drumetz/Pfister of the Banque de France in 2021 represents the first attempt at a more systematic assessment of MMT by two scholars with knowledge of and experience in central banking. This is a welcome event in the economic debate. The present paper analyses the merits of Drumetz/Pfister's criticism, and investigates some of the most common sources of "misinterpretation" of MMT.

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Year of publication:	2023
Authors:	Carnevali, Emilio ; Fontana, Giuseppe
Published in:	European Journal of Economics and Economic Policies: Intervention (EJEEP). - ISSN 2052-7772. - Vol. 20.2023, 1, p. 56-66
Publisher:	Cheltenham : Edward Elgar Publishing
Subject:	modern monetary theory \| government debt \| central banking \| inflation \| fiscal policy

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.4337/ejeep.2022.0088 [DOI] 187181555X [GVK] hdl:10419/280734 [Handle] RePEc:elg:ejeepi:v:20:y:2023:i:1:p56-66 [RePEc]
Classification:	E31 - Price Level; Inflation; Deflation ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E58 - Central Banks and Their Policies ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; B52 - Institutional; Evolutionary
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10014441464