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Nonsense economics: the rise of modern monetary theory


MMT is increasingly popular among left-wing economists. Unfortunately
 it is a mixture of the tautological and the tendentious

By Jonathan Portes  

Photo: Yui Mok/PA Wire/PA Images

Is John McDonnell a neoliberal? This sounds almost too obvious for John Rentoul’s famous list of “Questions To Which The Answer Is No.” But for some proponents of “Modern Monetary Theory” (MMT), Labour’s adoption of a “fiscal credibility rule” (based in part on academic work by Simon Wren-Lewis and me), means that “Labour is committed to the thinking which will deliver more austerity.”

MMT has become increasingly popular in some quarters on the left, both in the UK and abroad. Here influential supporters close to…

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