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1. Modern Monetary Theory remains a dangerous policy prescription in Canada and beyond

   Many economists warn about ballooning budget deficits and the potential for higher interest rates in the future. ...

2. A Primer on Modern Monetary Theory

   Modern Monetary Theory (MMT) is a policy model for funding government spending. While MMT is not new, it has recently received widespread attention, particularly as government spending has increased dramatically in response to the ongoing COVID-19 crisis ...

3. Modern Monetary Theory, Part 4: MMT and quantitative easing

   Participants on both sides of the Modern Monetary Theory (MMT) debate acknowledge that there’s no “free lunch” when a country’s central bank buys government debt directly and charges no interest on the debt. As explained in previous blog ...

4. Modern Monetary Theory, Part 3: MMT and inflation

   A basic premise of Modern Monetary Theory (MMT) is that a country that enjoys sovereign control over its money supply is effectively unconstrained by capital markets in the amount of borrowing the government can do to finance public ...

5. Modern Monetary Theory, Part 2: Will MMT hold down taxes?

   As government expenditures associated with the COVID-19 crisis continue to mount, and as government tax revenues decline along with economic activity, so does the government’s fiscal deficit increase. Less well-recognized, however, is ...

6. Modern Monetary Theory, Part 1: What is it and why is it gaining currency in these volatile times?

   Providing income support to workers and businesses involves large increases in government expenditures. ...