skip to main content
Idioma:
Primo Search
Clear Search Box
Search in: Busca Geral
Busca Avançada
Busca por Índices

Modern Monetary Theory: Cautionary Tales from Latin America

Edwards, Sebastian

The Cato journal, 2019-10, Vol.39 (3), p.529-561 [Periódico revisado por pares]

Washington: Cato Institute

Texto completo disponível

Citações Citado por
  • Título:
    Modern Monetary Theory: Cautionary Tales from Latin America
  • Autor: Edwards, Sebastian
  • Assuntos: Academic staff ; Budget constraint ; Capitalism ; Central banks ; Consumption ; Crises ; Crowding ; Economic models ; Economic policy ; Economists ; Employment ; Expenditures ; Finance ; Fixed exchange rates ; Full employment ; Inflation ; Interest rates ; Keynesian theory ; Krugman, Paul ; Macroeconomics ; Misconceptions ; Monetary policy ; Monetary theory ; Money ; Politicians ; Populism ; Progressivism ; Public debt ; Recipes ; Supporters ; Wisdom
  • É parte de: The Cato journal, 2019-10, Vol.39 (3), p.529-561
  • Descrição: During the last few years an apparently new and revolutionary idea has emerged in economic policy circles in the United States: "Modern Monetary Theory" (MMT). The central tenet of this view is that it is possible to use expansive monetary policy-money creation by the central bank (i.e., the Federal Reserve)-to finance large fiscal deficits, and create a "jobs guarantee" program that will ensure full employment and good jobs for everyone. This view is related to Abba Lerner's (1943) "functional finance" idea, and has become very popular in progressive spheres. According to MMT supporters, this policy would not result in crowding out of private investment, nor would it generate a public debt crisis or inflation outbursts. MMT runs against received wisdom among economists, and has been resisted by Keynesians and monetarists alike. Respected and influential academics such as Paul Krugman, Kenneth Rogoff, and Larry Summers, among others, have stated that MMT makes little sense. Krugman (2019b) has written that the principles behind MMT are "indefensible," and that the arguments made by its supporters are "sophistry." According to Rogoff (2019), MMT is "nonsense" based "on some fundamental misconceptions." And Summers (2019) has contended that embracing "modern monetary theory is a recipe for disaster." MMT supporters have responded by saying that their critics don't truly understand how modern monetary economies work. According to them, in countries with a currency of their own, governments don't face a hard budget constraint; the government can always print additional money to pay for higher expenditures. According to Stephanie Kelton (2019), "The government budget is not like a household budget because the government prints its own money." Along similar lines, Forstater and Mosler (2005) have argued that in a "fiat money" system the natural rate of interest is zero; the role of the monetary authority is to push the actual rate to zero, through the purchase of government securities. If long-term equilibrium interest rates are equal to zero, then r < g in growing economies-that is, the rate of interest is lower than the rate of growth of GDP-and there would be no explosion of government debt.
  • Editor: Washington: Cato Institute
  • Idioma: Inglês
Voltar para lista de resultados

  • Realização: ABCD-USP USP   Logos de Redes Sociais: Freepik

Buscando em bases de dados remotas. Favor aguardar.