We need to talk about modern monetary theory - CapX
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Modern Monetary Theory promises governments a magic money tree — but Latin America's inflation crises reveal the catastrophic real-world cost of ignoring monetary limits.
Modern Monetary TheoryQuantity Theory of MoneyFiscal PolicyInflation Theory
Theory Briefing
- MMT claims governments that issue their own currency can spend freely without defaulting — but critics say this dangerously dismisses inflation risk.
- Latin America's repeated hyperinflationary collapses serve as a living case study against MMT's core assumption that money-printing is consequence-free.
- Deep mathematical and logical flaws in MMT's framework, the article argues, make it an unreliable guide for real fiscal and monetary policy.