Policy Aspects of MMT
By Eric Tymoigne and L. Randall Wray
[Part I] [Part II] [Part III] [Part IV] [Part V] [Part VI]
From the theoretical framework discussed in the 5 previous installments, MMT draws specific policy conclusions about fiscal, monetary and financial policy. In this final post we address the policy implications.
In line with Keynes and Minsky, MMT recognizes that unemployment, arbitrary distribution of income, price instability and financial instability are central problems of market economies that require some government involvement for resolution.