Françoise Drumetz and Christian Pfister have enlivened us with a new Banque de France working paper “The Meaning of MMT.” I have read a lot of critiques of Modern Monetary Theory (MMT) over the years, and summarised what I saw as the reasonable critiques in a chapter in my latest book, “
Thanks for responding. I also was provoked by their take on this. As a former central banker, I expected better. Still, there are issues in their review that warrant a serious discussion, like the role of reserves vs. bond financing, see the recent BIS WP by Calvo and IMF WP by Singh & Stella, quoted by Calvo.
Thanks for responding. I also was provoked by their take on this. As a former central banker, I expected better. Still, there are issues in their review that warrant a serious discussion, like the role of reserves vs. bond financing, see the recent BIS WP by Calvo and IMF WP by Singh & Stella, quoted by Calvo.
A very satisfying response, thank you.