Modern Monetary Theory

The core of modern monetary theory is not to leave monetary policy solely to the central bank, but to supply money to Main Street—that is, the real economy—in a drip-feed manner through the government's active fiscal policy. The original intent is that the state should become the last bulwark of job creation and strive to achieve full employment.

• Larry Fink, chairman of BlackRock, the world's largest asset manager, openly called the theory "garbage." He said, "The fiscal deficit could induce an uncontrollable rise in interest rates."

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Topics: Jobless Growth,new normal,economic theory
Category: Wiki/Economy
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