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Nonsense. MMT is a theory of how government finance works and interacts with the foreign and private sectors (including money, banking and debt). It’s not somet
by stephen_g 6y ago
Nonsense. MMT is a theory of how government finance works and interacts with the foreign and private sectors (including money, banking and debt). It’s not something you try.
Overt Money Financing (OMF) is a policy option that MMT opens up, and there are probably shades of that in what’s going on, but I don’t see a whole lot of fiscal or monetary policy that actual MMT economists would say is a good idea.
- tylerhou 6y agoExactly — this is nowhere close to MMT. Stabilizing the price of the USD during recessions is literally the definition of Keynesian.
- ric2b 6y ago> Stabilizing the price of the USD during recessions is literally the definition of Keynesian. Except the reverse doesn't happen (since the gold standard was dropped), so it's at best "half-Keynesian": https://fred.stlouisfed.org/series/fedfunds https://fred.stlouisfed.org/series/fedfunds