Weekly Geopolitical Report – Modern Monetary Theory: Part IV (April 1, 2019)

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.

View the full report