A Skeptic's Guide to Modern Monetary Theory
Working Paper 26650
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.
The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
N. Gregory Mankiw, 2020. "A Skeptic’s Guide to Modern Monetary Theory," AEA Papers and Proceedings, vol 110, pages 141-144. citation courtesy of