(May 11): Modern Monetary Theory (MMT) has received unprecedented attention now that policymakers are pursuing extraordinary economic-policy measures to combat the Covid-19 pandemic. Discussing the US Federal Reserve’s “whatever it takes” approach, CNBC’s Joe Kernen recently concluded that “we are all MMTers now”. And in a recent commentary, Willem H Buiter of Columbia University claimed that “much of the US response [to the pandemic] will come in the form of ‘helicopter money’, an application of [MMT] in which the central bank finances fiscal stimulus by purchasing government debt issued to finance tax cuts or public spending increases”.

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