by Following up on my comments on the paper: “Deficits Do Matter: A Review of Modern Monetary Theory” by Farah Omran and Mark Zelmer, I am going to do a high level discussion about their claims about the value of an independent central bank. (For new readers, I am discussing this paper as I will be on a panel about Modern Monetary Theory (MMT), and Mark Zelmer is one of the participants. I am using my articles here as a way of thinking about my prepared remarks.)The headline of this article is somewhat dramatic, but that is the only snappy way I can think of summarising my interpretation of the article. If one believes those authors, creating an independent central bank is a major innovation in economic policy that generates positive outcomes by itself. The MMT prescription of downgrading
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Following up on my comments on the paper: “Deficits Do Matter: A Review of Modern Monetary Theory” by Farah Omran and Mark Zelmer, I am going to do a high level discussion about their claims about the value of an independent central bank. (For new readers, I am discussing this paper as I will be on a panel about Modern Monetary Theory (MMT), and Mark Zelmer is one of the participants. I am using my articles here as a way of thinking about my prepared remarks.)Bond EconomicsThe headline of this article is somewhat dramatic, but that is the only snappy way I can think of summarising my interpretation of the article. If one believes those authors, creating an independent central bank is a major innovation in economic policy that generates positive outcomes by itself. The MMT prescription of downgrading monetary policy (and a general hostility towards the concept of central bank independence) would in this case be a damaging policy shift.
Central Bank Independence As A Secret Ingredient?
Brian Romanchuk