The following is a short excerpt from Steven Hail’s article in The Conversation Explainer: what is modern monetary theory?
MMT or Modern Monetary Theory is an approach to economic management developed since the 1990s by Professor Bill Mitchell, alongside American academics like Professor Randall Wray, Stephanie Kelton, and investment bankers and fund managers like Warren Mosler. It builds on the ideas of a previous generation of economists, such as Hyman Minsky, Wynne Godley and Abba Lerner, whose interpretation of the work of the famous economist J.M.Keynes was very different from that which became dominant by the 1980s.
There are three core statements at the heart of modern monetary theory.
1) Monetary sovereign governments face no purely financial budget constraints. 2) All economies, and all governments, face real and ecological limits relating to what can be produced and consumed. 3) The government’s financial deficit is everybody else’s financial surplus.
Blind Insights podcast
Many of our speakers were guests on David Olney’s podcast series Blind Insights. David is a prolific broadcaster and commentator and has lectured at The University of Adelaide since 2002 at both undergraduate and postgraduate level. David has convened courses ranging from applied thinking to strategic culture, as well as providing applied thinking training to government, defence, and private organisations.