Skip to content
Subscriber Only

Bond Bull Run Shows Modern Monetary Theory May Be New Normal

  • Pimco investor touts MMT as potential guide for Japan markets
  • Negative yields may signal too little debt supply: Eaton Vance
Updated on

Modern Monetary Theory should be anathema to bond investors, with its permissive license on government spending. But some finance luminaries are warming to the once-fringe idea.

The proposition that countries with their own floating currencies can’t run out of money augurs a world of rising public debt, given the MMT mantra to expand fiscal policy if inflation stays low. Over in America, it’s energizing socialists in their call for new trillion-dollar programs.