In today’s briefing:
- Modern Monetary Theory Threatens Financial Markets with Lingering Legacies
Modern Monetary Theory Threatens Financial Markets with Lingering Legacies
- The inflationary implications of Modern Monetary theory have finally been exposed in the aftermath of the COVID-19 pandemic after complacency in financial markets. Wall Street firms played a significant role.
- The risks of inflation were underplayed due to prolonged disinflationary impulses stemming from decades of globalisation. Recent US practice of MMT could force the Fed to raise its inflation target.
- Japan pursued an MMT framework since 2013, but the continuation of quantitative easing and arrival of rising inflation is undermining the yen. The Eurozone faces the same predicament as Japan.
Before it’s here, it’s on Smartkarma
