, Columnist
Will Powell and Yellen Test MMT in the U.S.?
Georgia’s runoff elections removed a large roadblock to fiscal and monetary policy coordination.
The dynamic duo.
Photographer: Elijah Nouvelage/Bloomberg
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Georgia voters might have given the green light to Modern Monetary Theory in America.
Immediately after November’s election, I wrote that the Federal Reserve would have the weight of the world’s largest economy on its shoulders yet again, given what looked to be a divided government. At the time, Republicans were all but guaranteed to retain control of the Senate, dashing hopes of politicians working hand-in-hand with the central bank to provide ample fiscal stimulus to get Americans through the coronavirus pandemic.