Modern Monetary Theory (MMT) has been hailed by some and scorned by others as offering a new framework to understand the financial system. But what is specifically ‘modern’ about MMT, and how does it differ from rival accounts of the financial economy? We talk to Bill Mitchell, one of the leading proponents of MMT, who gives us an introductory rundown, plus tells us why the Japanese economy is unfairly maligned and explains what the future has in store for MMT as its inexorably advances against orthodox rivals.
-> Our earlier episode with Doug Henwood, a critic of MMT, can be found here: Episode 68
-> The episode with Bill Mitchell’s co-author, Thomas Fazi, is here: Episode 38
- Reclaiming the State, Bill Mitchell and Thomas Fazi (book)
- MMT Has Been Around for Decades. Here’s Why It Just Caught Fire, Ben Holland & Matthew Boesler, Bloomberg
- An MMT response on what causes inflation, FT
- What you need to know about modern monetary theory, Gavyn Davies, FT
- MMT Is Already Helping, Pavlina R. Tcherneva, Jacobin