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Opinion
Clive Crook

What Would Modern Monetary Theory Do About Inflation?

MMT correctly acknowledges the problem of rising prices, but it offers no plausible solution.

Doesn’t go as far as it used to.

Doesn’t go as far as it used to.

Photographer: Joe Raedle/Getty Images North America

The squabbling over whether Modern Monetary Theory is a Copernican revolution for public policy or a load of nonsense hasn’t been very enlightening. The prevailing sentiment in both camps — “You just don’t get it” — is a declaration of faith that hardly inspires confidence in economics as a science.

As it happens, I’m more open to MMT than you might expect, given my slavishly orthodox leanings. I think it asks good questions and proposes some clarifying thought experiments. I also think it ends up in entirely the wrong place.