The Economist Takes Note: Modern Monetary Theory Gets Much Deserved Attention
As faithful readers of this blog will know, I make only very sporadic contributions to this blog but a substantial fraction of those contributions have made reference to modern monetary theory (MMT), the view (crudely put) that, based on a detailed understanding of the institutional mechanisms behind monetary operations, calls into question our obsession with balancing the budget.
Well, after many years in the wilderness, it looks like one of the chief MMT protagonists has gotten the attention of The Economist: http://www.economist.com/node/21542174 while the community at large has gotten the attention (and admiration) of at least one senior person at CNBC:Â http://www.cnbc.com/id/45765009
While these are far from perfect representations of MMT, they offer reason for hope that in 2012, we might see a more reasoned discussion about fiscal and monetary policy emanating perhaps, dare I dream big, from within the NDP or perhaps even in the Liberal Party.Â Finally, for those who want to get real insight into MMT, check out the New Economic Perspectives primer series at: http://neweconomicperspectives.blogspot.com/2011/06/modern-money-theory-primer-on.html)
All the best for 2012 everyone…