A teoria monetária moderna não é nem moderna, nem monetária - Lawrence Goodman

E eu diria que é uma teoria de baixíssima qualidade. Mas isso não impede que tresloucados econômicos emprestem adesão a esse novo instrumento de gastança ilimitada por políticos e profissionais pouco comprometidos com a governança responsável.
Paulo Roberto de Almeida

From: Lawrence Goodman, President, Center for Financial Stability

I had the pleasure of presenting "Monetary Policy Paradigm Shifts" as well as delivering conference summary remarks at a discussion hosted by the Shanghai Development Research Foundation (SDRF).  The conference hosts beautifully structured the inquiry regarding monetary policy across three areas.  Corresponding conclusions follow:

- "Modern Monetary Theory (MMT)" is neither modern nor monetary.  It is theory.  CFS has avoided discussing this topic; however, threads seem to be drifting into mainstream thinking.  MMT has already been tried and performed poorly.  Our assessment rests on studies and empirical evidence including Gail Makinen's "Studies in Hyperinflation & Stabilization" published by CFS in 2014.  

- "Fundamental changes in theory and policy today" are a function of three policy miscalculations since 2002.  Monetary mistakes in the past have paved the way for more experiments and the surfacing of ideas such as MMT.

- "The effect on global markets and economies" is to skew incentives for savers and investors, distort market signals, and limit growth.

Although tricky, a slow and careful restoration of normalcy is essential.  It is today's critical constrained maximization problem.

View the remarks at www.centerforfinancialstability.org/research/ShanghaiDRF_111819.pdf

Best regards,
Larry
-- 
Lawrence Goodman
President
Center for Financial Stability
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www.CenterforFinancialStability.org