by Bill O’Grady
In Part III, we examined the role of economic paradigms in the equality/ efficiency cycle. This week, we conclude this four-part series with a discussion on the flaws of Modern Monetary Theory (MMT) and market ramifications.
The Flaws of MMT
All of the major economic paradigms previously discussed lead to eventual problems. Capital-friendly policies, such as Classical or supply-side theories, eventually lead to inequality. Policies less friendly to capital eventually become inflationary. MMT has a few flaws as well. Here are the ones we are most concerned about.
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