Japan Denies Policy Influenced by Modern Monetary Theory In Any Way

Japan took the unusual step of issuing a statement to deny its policy was in any way influenced by modern monetary theory on a day when senior government officials hinted that extra public spending could be in the works.

“As a government, we don’t implement policy based on the idea that Japan is a successful case of MMT because its inflation and interest rates are not rising despite massive debt,” the statement says. “We are working to restore fiscal health,” it added.