What modern monetary theory is, and what it is not

Emilio Carnevali, Giuseppe Fontana

Research output: Contribution to journalArticlepeer-review


Modern monetary theory (MMT) has grown in popularity in recent years. Several central bankers have made passing comments about it. However, the publication of two papers by Drumetz/Pfister of the Banque de France in 2021 represents the first attempt at a more systematic assessment of MMT by two scholars with knowledge of and experience in central banking. This is a welcome event in the economic debate. The present paper analyses the merits of Drumetz/Pfister’s criticism, and investigates some of the most common sources of ‘misinterpretation’ of MMT.
Original languageEnglish
Pages (from-to)1-11
Number of pages11
JournalEuropean Journal of Economics and Economic Policies: Intervention
Early online date1 Oct 2022
Publication statusE-pub ahead of print - 1 Oct 2022


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