by As investors assesses the remarkable turnaround in fiscal policy from one of the world’s number-six economy, the U.K., the one conclusion surely is that a nation’s financial flexibility is limited by the willingness of world markets to finance it.“Ending MMT is the international lesson of the U.K. debacle—any populist selling fiscal pipedreams will be confronted by the precedent of the U.K.,” said Paul Donovan, chief economist at UBS Global Wealth Management, in a recent note.To which Stephanie Kelton, the leading proponent of modern monetary theory and author of The Deficit Myth replies, “rubbish.” ...Market WatchHave the bond vigilantes killed off modern monetary theory? MMT proponent Stephanie Kelton says that’s nonsense. Steve Goldstein
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As investors assesses the remarkable turnaround in fiscal policy from one of the world’s number-six economy, the U.K., the one conclusion surely is that a nation’s financial flexibility is limited by the willingness of world markets to finance it.“Ending MMT is the international lesson of the U.K. debacle—any populist selling fiscal pipedreams will be confronted by the precedent of the U.K.,” said Paul Donovan, chief economist at UBS Global Wealth Management, in a recent note.
To which Stephanie Kelton, the leading proponent of modern monetary theory and author of The Deficit Myth replies, “rubbish.” ...