The trouble with Alan Kohler and MMT


At The Australian today comes Alan Kohler hosing MMT:

The trouble with modern monetary theory (MMT) is that, as with fiscal policy generally, it would be run by politicians, and we’ve only fairly recently managed to prise monetary policy away from them.

…monetary policy looks exhausted, at least in terms of stimulating real activity and employment, as opposed to asset prices…So it seems likely that in the next downturn, fiscal policy will come into its own again, because monetary policy either has nowhere to go, or is ineffective.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.