Updated – 2018:
In 2011 I was briefly associated with a group of economists who advocate for a theory called “Modern Monetary Theory”. Paul Krugman even cited an early draft version of a popular paper of mine as a MMT paper. This paper is not a MMT paper although an early draft cited aspects that were consistent with MMT. The paper is not a representation of MMT’s views and I have never fully endorsed MMT.
That said, I am sympathetic to some MMT ideas (like endogenous money theory), but I’ve never fully agreed with MMT as a whole and in fact believe there are elements of MMT that are wrong. In fairness, there are also elements I think are useful. I’ve outlined those views in a post here. I’ve also written an extensive critique of MMT here. On the whole I find MMT to be an eye opening and useful theory to understand, but I do worry that some of their ideas are a bit extremist and twist the operational realities of our monetary system in an effort to promote progressive policy ideas.
I hope you find the attached material helpful.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.