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  5. A Skeptic's Guide to Modern Monetary Theory

A Skeptic's Guide to Modern Monetary Theory

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Abstract

This essay discusses a new approach to macroeconomics called modern monetary theory (MMT). It identifies the key differences between MMT and the approach found in mainstream textbooks. It concludes that while MMT contains some kernels of truth, its most novel policy prescriptions do not follow cogently from its premises.

Citation

Mankiw, N Gregory. 2020. "A Skeptic's Guide to Modern Monetary Theory." AEA Papers and Proceedings, 110: 141-44. DOI: 10.1257/pandp.20201102

Additional Materials

JEL Classification

  • E52 Monetary Policy
  • E62 Fiscal Policy