A new strand of economics called “Modern Monetary Theory” (MMT) is seen by its advocates as a solution to the flawed economic thinking that contributed to the financial crisis. The ideas behind it could be a useful addition to the possible toolkit if another major shock hits the global economy. But the risk is that governments would rely on it even in the good times, eventually leading to high inflation.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services