- 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.