Sunday , April 27 2025
Home / Mike Norman Economics / Primer: MMT Theory Of Inflation — Brian Romanchuk

Primer: MMT Theory Of Inflation — Brian Romanchuk

Summary:
The Monetary Monopoly Model (Section 4.3) is a core model of Modern Monetary Theory. If we take it literally, we do not need a theory of inflation, since the price level in some variants of the model is explicitly set as a policy variable. However, reality is far more complex than the model suggests, and if we want to match theory to reality, we are faced with the realisation that governments act in a fashion that sabotages the control of the price level that they do have. (Note: This is an unedited draft of a section of my increasingly long MMT primer.) Bond Economics Primer: MMT Theory Of Inflation Brian Romanchuk

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model

Mike Norman writes The Accursed Tariffs — NeilW

Mike Norman writes IRS has agreed to share migrants’ tax information with ICE

Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius

The Monetary Monopoly Model (Section 4.3) is a core model of Modern Monetary Theory. If we take it literally, we do not need a theory of inflation, since the price level in some variants of the model is explicitly set as a policy variable. However, reality is far more complex than the model suggests, and if we want to match theory to reality, we are faced with the realisation that governments act in a fashion that sabotages the control of the price level that they do have.
(Note: This is an unedited draft of a section of my increasingly long MMT primer.)
Bond Economics
Primer: MMT Theory Of Inflation
Brian Romanchuk
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.

Leave a Reply

Your email address will not be published. Required fields are marked *