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The IC guide to Modern Monetary Theory

MMT 101: 5 steps to understanding the economic principle
The IC guide to Modern Monetary Theory

Key Points: 

  • The ideas of Modern Monetary Theory (MMT) could be close to coming of age
  • The theory represents a fundamental rethink about the role of debt for countries that borrow in a currency that they themselves print.

MMT is not a panacea and its implications for economic policy carry some noteworthy risks. It would, however, be a mistake to accept the characterisation of MMT as crack-pot, money-printing, leftwing wish-fulfillment, as peddled by some of its vocal detractors. 

This five step guide examines what the theory is, and the risks and opportunities that this new paradigm could bring.

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