What modern monetary theory is, and what it is not

Emilio Carnevali; Giuseppe  Fontana

doi:10.4337/ejeep.2022.0088

What modern monetary theory is, and what it is not

Emilio Carnevali, Giuseppe Fontana

Accounting and Financial Management Department

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

90 Downloads (Pure)

Abstract

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 language	English
Pages (from-to)	56–66
Number of pages	11
Journal	European Journal of Economics and Economic Policies: Intervention
Volume	20
Issue number	1
Early online date	1 Oct 2022
DOIs	https://doi.org/10.4337/ejeep.2022.0088
Publication status	Published - 26 May 2023

Keywords

central banking
fiscal policy
government debt
inflation
modern monetary theory

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.4337/ejeep.2022.0088Licence: CC BY

Carnevali-Fontana on Drumetz and Pfiser_31May2022Accepted author manuscript, 285 KB
2052-7772-article-p56Final published version, 133 KBLicence: CC BY

Cite this

@article{ae3d9b35a5d9468b96aae181150f934c,

title = "What modern monetary theory is, and what it is not",

abstract = "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{\textquoteright}s criticism, and investigates some of the most common sources of {\textquoteleft}misinterpretation{\textquoteright} of MMT.",

keywords = "central banking, fiscal policy, government debt, inflation, modern monetary theory",

author = "Emilio Carnevali and Giuseppe Fontana",

year = "2023",

month = may,

day = "26",

doi = "10.4337/ejeep.2022.0088",

language = "English",

volume = "20",

pages = "56–66",

journal = "European Journal of Economics and Economic Policies: Intervention",

issn = "2052-7764",

publisher = "Edward Elgar",

number = "1",

}

TY - JOUR

T1 - What modern monetary theory is, and what it is not

AU - Carnevali, Emilio

AU - Fontana, Giuseppe

PY - 2023/5/26

Y1 - 2023/5/26

N2 - 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.

AB - 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.

KW - central banking

KW - fiscal policy

KW - government debt

KW - inflation

KW - modern monetary theory

UR - http://www.scopus.com/inward/record.url?scp=85161626259&partnerID=8YFLogxK

U2 - 10.4337/ejeep.2022.0088

DO - 10.4337/ejeep.2022.0088

M3 - Article

SN - 2052-7764

VL - 20

SP - 56

EP - 66

JO - European Journal of Economics and Economic Policies: Intervention

JF - European Journal of Economics and Economic Policies: Intervention

IS - 1

ER -

What modern monetary theory is, and what it is not

Abstract

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this