Modern Monetary Theory
Modern Monetary Theory, Modern Money Theory (MMT) or Modern Monetary Theory and Practice (MMTP) is a macroeconomic theory and practice that sees the practical uses of fiat currency in a public monopoly from the issuing authority, normally the government's central bank.[1]
MMT says that the government could use fiscal policy to achieve full employment and money creation to fund government purchases.
Modern Monetary Theory Media
Illustration of the saving identity with the three sectors, the computation of the surplus or deficit balances for each and the flows between them
The Federal Reserve raising the Federal Funds Rate above U.S. Treasury interest rates creates an inverted yield curve, which predicts recessions.
References
- ↑ Modern Monetary Theory (MMT): A General Introduction. Political Economy - Development: Fiscal & Monetary Policy eJournal. Social Science Research Network (SSRN). Accessed 10 April 2020.
