Economics

BlackRock CEO Larry Fink Says Modern Monetary Theory Is ‘Garbage’

Deficits may drive interest rates to an ‘unsustainable level’
Economists from Summers to Krugman have denounced MMT

Fink discusses China’s demand for U.S. Treasuries and his view on modern monetary theory.Source: Bloomberg

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By Margaret Collins

March 7, 2019 at 12:01 PM UTC

Updated on

March 7, 2019 at 1:35 PM UTC

This article is for subscribers only.

BlackRock Chief Executive Officer Larry Fink said he’s not a proponent of modern monetary theory.

“That’s garbage,” Fink said in an interview with Erik Schatzker on Bloomberg Television Thursday. “I’m a big believer that deficits do matter. I’m a big believer that deficits are going to be driving interest rates much higher and it could drive them to an unsustainable level. ”