Economics
MMT’s Kelton Sees Central Banks Quietly Yielding to Governments
- Their independence will shrink to policy execution, she says
- Says Japan policy flawed by hitting gas and brakes together
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The world’s central banks are likely to start following the lead set by their governments, according to the economist who’s become the public face of Modern Monetary Theory -- even if they don’t acknowledge what they’re doing.
“Greater coordination between fiscal and monetary authorities is almost certainly the wave of the future,” Stephanie Kelton, a professor at Stony Brook University in New York, said in an interview in Tokyo. While they won’t openly say that they’ve lost their independence, she predicted, “you’re going to see central banks responding in more accommodative, coordinating ways.”