Explain whether, and why, you agree, or disagree, with the view of MMT suggested by the following quotations.

Explain whether, and why, you agree, or disagree, with the view of MMT suggested by the following quotations.

“The truth about MMT is… it looks very much like the ‘Functional Finance (FF)’ gospel preached by Abba Lerner in the late 1930s and 1940s… while Keynes acknowledged Lerner’s brilliance, and expressed sympathy for the logic of his framework of thought, he saw FF more as a pedagogic device than as a basis of a rigorous policy program… Perhaps most importantly, Keynes feared FF’s potentially damaging effects on debt sustainability and private sector confidence, and the risk it presented for inflation.”

“As ever, Keynes was a fount of wisdom. In our judgment the overwhelming conclusion to be reached is that of Keynes: resort to the policy prescriptions of MMT is appropriate only in exceptional situations, where economies are far from full employment, deflationary pressures are in evidence, and interest rates are at the zero bound.”

Typed, Page numbers, single-sided (words only on the front of pages),

Lastly, please say I disagree with the MMT views but understand that for some exceptional situations as mentioned that I understand and agree it could be a useful tool.

Reference: The Deficit Myth by Stephanie Kelton

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