Recent macroeconomic debates through the lens of modern monetary theory
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Date
2023
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Ivane Javakhishvili Tbilisi State University Press
Abstract
This article analyzes recent macroeconomic debates from the perspective of Modern Monetary Theory
(MMT). On each issue, there is a deep gulf between the arguments made by orthodox economists and the analysis
that is informed by heterodoxy – in particular by those who adopt Modern Monetary Theory (MMT).
Unfortunately, most of the ‘conventional wisdom’ held by policymakers as well as by the general public is largely
based on orthodox theory. This is because orthodox economists have greater access to the dominant media
outlets as well as to politicians. However, as Keynes had warned in 1936, orthodox economics is not only
wrong, but it leads to dangerous policy recommendations. MMT provides a useful alternative based on sound
theory and policy advice appropriate to the kind of economy in which we live.
Description
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Citation
VIII International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2023, pp. 438-463