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We've unofficially crossed the rubicon into basically what amounts to Modern Monetary Theory. It's going to be an interesting decade.
by selectodude 6y ago
We've unofficially crossed the rubicon into basically what amounts to Modern Monetary Theory. It's going to be an interesting decade.
- eli_gottlieb 6y agoNah, before it becomes real MMT we have to actually keep up the trend of taking the cheap money and spending it fiscally, not just giving out cheap loans. Right now we've got the HEROES Act stalled in the Senate and the CARES Act has largely run out, so we're back to Great Recession era "haha money printer go brrr".
- cperciva 6y agoI'd go a step further and say that MMT is about borrowing for structural deficits. There's nothing MMT about Keynesian stimulus in 2008 or 2020; where things went off the rails was governments running large deficits during the boom years of 2015-2019 (when they should instead have been saving for 2020).
- jdhn 6y agoI would argue that we crossed that rubicon in 2008 with the bailouts, but I completely agree with you that it's going to be quite an interesting decade.