PROF. LAL MONTHLY „BUSINESS STANDARD“ COLUMN
Published with the kind permission of the author
Much of what is new in MMT is unconvincing and a dangeroustemplate for public policy
Many of the Democratic party contenders forthe US Presidency have endorsed a set of economicpolicies promoted by purveyors ofwhat is called “Modern Monetary Theory” (MMT).The charismatic Congresswoman Alexandria Ocasio–Cortez, who though too young to run for Presidentherself, has already set part of the Democrat’s agendawith the Green New Deal, has now endorsed MMT asthe basis for the Democrat’s economic policy. In thisshe joins Stephanie Kelton, a professor at Stony BrookUniversity, who was an advisor to Bernie Sanders in2016 after serving as the chief economist in the USSenate Budget Committee in 2015. The archbishop ofMMT is Herman Minsky’s student, L Randall Wray,whose Modern Money Theory ,(2nd edtn, PalgraveMacmillan, 2015) provides the best consolidatedaccount of the “theory” and policyprescriptions of MMT.