Financial Times on MMT – Part 2

The first part of this short two-part series addressed an article by John Kay in the Financial Times in which he characterizes Modern Monetary Theory and the chartal explanation of state money on which it is partially based as a crank theory. In fact, as Pavlina Tcherneva documents in an interesting book chapter on the subject, the chartal or tax basis of money is not only recognized by Modern Monetary Theorists but, in the history of economic thought, by such notables as Keynes, Say, Mill and Adam Smith.

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