It addresses a burning question in the policy and politics of the US and elsewhere where MMT is gaining a policy foothold, especially among progressive activists and politicians: Is MMT, in fact, a good guide for progressive macroeconomic policy?

1.- Introduction: Strange Bedfellows and the Rise of Modern Money Theory.- 2. MMT Basics and the Sustainability of Money Financed Deficits.- 3. Institutional Specificity and the Limited Policy Relevance of Modern Money Theory.- 4. The Role of the Dollar as an International Currency and Its Limits in a Multi-Key Currency World.- 5. MMT as “America First” Monetary Policy and Its Costs.- 6. The Mystery of the Missing Minsky:  Financial Instability as a Constraint on MMT Macroeconomic Policy.- 7. An MMT Free Lunch Mirage Can Lead to Perverse Outcomes: Fight Your Friends, Spare Your Enemies.- 8. Conclusion: Contours of a Progressive Macroeconomic Policy.

This Palgrave Pivot assesses the validity of Modern Money Theory’s approach to macroeconomic policy, specifically monetary and fiscal policy. Whereas other papers have focused primarily on theoretical and doctrinal issues, this book focuses primarily on an analysis of MMT’s policy approach. Though drawing on academic literature, this book’s approach is empirical and policy-based, making it accessible to scholars and the public alike. It addresses a burning question in the policy and politics of the US and elsewhere where MMT is gaining a policy foothold, especially among progressive activists and politicians: Is MMT, in fact, a good guide for progressive macroeconomic policy? The main focus of this book is to explain why the answer to this question is no.

“Professor Gerald Epstein is a leading thinker in the political economy of monetary policy and central banking. His approach emphasizes the significance of interests and institutional arrangements. This book provides a critique of modern money theory (MMT) and its claim that sovereign governments are financially unconstrained. It shows how institutional arrangements differentially constrain governments, giving rise to a financial standing hierarchy that MMT overlooks and neglects. The book makes an important novel contribution, adding to existing macroeconomic critiques of MMT.” (Thomas Palley, Co-editor, Review of Keynesian Economics)

“Epstein’s book on MMT is an important contribution to the debate on monetary theory and policy. It considers a wide range of problems of this theory and raises pertinent concerns about the applicability of its policy. Based on an extensive knowledge of the literature and of contemporary monetary history, the book underscores the failure of MMT to describe the complex working of the financial system. Readers can enormously benefit from this book.” (Carlo Panico, Professor of Economics, Universidad Nacional Autonomous de Mexico (UNAM))

“Jerry Epstein takes no prisoners in his essential guide to Modern Monetary Theory. His examination of the international dimensions of the approach and its implications for non-key currency countries raise vital issues that often receive little attention by both proponents and critics.” (Ilene Grabel, Distinguished University Professor, University of Denver)

Provides a systematic and comprehensive critique of Modern Money Theory’s (MMT) Macroeconomic Policy Approach Undertaken from a post-Keynesian, progressive perspective Presents major public policy issues in an accessible, empirical approach

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