What's Wrong with Modern Money Theory?: A Policy Critique

Description

This Palgrave Pivot assesses the validity of Modern Money Theory’s approach to macroeconomic policy, specifically monetary and fiscal policy. Whereas other papers have focused primarily on theoretical and doctrinal issues, this book focuses primarily on an analysis of MMT’s policy approach. Though drawing on academic literature, this book’s approach is empirical and policy-based, making it accessible to scholars and the public alike. It addresses a burning question in the policy and politics of the US and elsewhere where MMT is gaining a policy foothold, especially among progressive activists and politicians: Is MMT, in fact, a good guide for progressive macroeconomic policy? The main focus of this book is to explain why the answer to this question is no. Front Matter ....Pages i-xi Introduction: Strange Bedfellows and the Rise of Modern Money Theory (Gerald A. Epstein)....Pages 1-15 MMT Basics and the Sustainability of Money Financed Deficits (Gerald A. Epstein)....Pages 17-33 Institutional Specificity and the Limited Policy Relevance of Modern Money Theory (Gerald A. Epstein)....Pages 35-43 The Role of the Dollar as an International Currency and Its Limits in a Multi-Key Currency World (Gerald A. Epstein)....Pages 45-56 “America First” Monetary Policy and Its Costs (Gerald A. Epstein)....Pages 57-64 The Mystery of the Missing Minsky: Financial Instability as a Constraint on MMT Macroeconomic Policy (Gerald A. Epstein)....Pages 65-75 An MMT Free Lunch Mirage Can Lead to Perverse Outcomes: Fight Your Friends, Spare Your Enemies (Gerald A. Epstein)....Pages 77-87 Conclusion: Contours of a Progressive Macroeconomic Policy (Gerald A. Epstein)....Pages 89-98 Back Matter ....Pages 99-100