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Worried about debt? Not in a world running on MMT

Summary:
‘Modern Monetary Theory gives us the power to imagine a new politics and a new economy’ Balancing budgets, reducing deficits and eliminating debt: these priorities have preoccupied the minds of many Canadian politicians, economists and voters, but a different theory of macroeconomics is having a moment, as the world weathers a pandemic. Modern Monetary Theory (MMT) proposes a shift in focus from a balanced budget to a balanced economy: one that offers full employment, a more equitable distribution of wealth and a social safety net for all who need one. At the moment, there appears to be a rare consensus among economists, business leaders, and politicians of all stripes that governments have to spend whatever it takes to ease the pain for millions of Canadians suffering the

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‘Modern Monetary Theory gives us the power to imagine a new politics and a new economy’



Balancing budgets, reducing deficits and eliminating debt: these priorities have preoccupied the minds of many Canadian politicians, economists and voters, but a different theory of macroeconomics is having a moment, as the world weathers a pandemic.

Modern Monetary Theory (MMT) proposes a shift in focus from a balanced budget to a balanced economy: one that offers full employment, a more equitable distribution of wealth and a social safety net for all who need one.

At the moment, there appears to be a rare consensus among economists, business leaders, and politicians of all stripes that governments have to spend whatever it takes to ease the pain for millions of Canadians suffering the aftershocks of the pandemic. That may be one of the reasons why MMT, which has been around for decades, is in the spotlight and challenging economic orthodoxy.

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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