Written by Alex Beveridge
Modern Monetary Theory (MMT) says countries that spend, tax and borrow in their own currency shouldn’t worry about government deficits because they can print as much money as they need.
Traditional concerns about budget deficits are no longer relevant.
But critics of MMT say unshackled spending would cause inflation to skyrocket. Their view is that what’s new in MMT isn’t true, and what’s true isn’t new.
The MMT debate is theoretical but not academic. Several politicians have become MMT advocates and the massive economic stimulus programmes undertaken by many governments in response to the COVID-19 pandemic is providing a test case for MMT.
Should investors expect significant economic growth -- or dangerous side effects?
This is one of the topics to be explored at Institutional Investor’s European Pensions & Investment Roundtable to be held in person, in Copenhagen on September 29-October 1, 2021.
Interested in attending? Register your interest here.
See a full list of our live events happening in September here.