It is not true that Japan's experience proves that Modern Monetary Theory works, as some have argued. But increasing deficit-financed spending, in Japan and elsewhere, may still have merit, despite inflationary risks.
TOKYO – The once-obscure school of macroeconomic thought known as Modern Monetary Theory has been attracting a lot of attention lately. Some US progressives, such as Representative Alexandria Ocasio-Cortez (AOC), and economists like James K. Galbraith, now advocate including MMT in the policy conversation, while others, including Kenneth Rogoff, dismiss it as problematic and even dangerous.
TOKYO – The once-obscure school of macroeconomic thought known as Modern Monetary Theory has been attracting a lot of attention lately. Some US progressives, such as Representative Alexandria Ocasio-Cortez (AOC), and economists like James K. Galbraith, now advocate including MMT in the policy conversation, while others, including Kenneth Rogoff, dismiss it as problematic and even dangerous.