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.
|Number of pages||11|
|Journal||European Journal of Economics and Economic Policies: Intervention|
|Early online date||1 Oct 2022|
|Publication status||E-pub ahead of print - 1 Oct 2022|