The Sidney Morning Herald
…Amid these debates about fiscal policy, a radical school of thought called Modern Monetary Theory, or MMT, has gained more prominence.
Proponents of this theory have been on the periphery of mainstream economics for more than two decades but their profile has been raised by this year’s US presidential race. Academic economist Stephanie Kelton, a leading advocate of MMT, is an adviser to presidential hopeful, Senator Bernie Sanders…
…..”If a state suddenly adopted this and said “we’re churning out greenbacks or Australian dollars” the money markets – filled with people of the old faith – would run wild,” he said. “It’s likely that access to real wealth would shift around in very unpredictable ways if this was executed.”
Bill Mitchell is not surprised by the criticisms. He readily agrees it’s “a big ask” for economists with traditional training to accept a theory that “turns everything on its head.”
“It takes a long time for ideas to permeate and spread and Modern Monetary Theory is very young in that process,” he said.