We have commented elsewhere on so-called Modern Monetary Theory: See herein So-Called Modern Monetary Theory Does Not Qualify As Scientific Macroeconomics, FMD’s take on Greg Mankiw’s Take on Modern Monetary Theory, Alberto Bisin Re Modern Monetary Theory, and Modern Monetary Theory is Backward.

The economic process, like a motor car, has laws of its own which drivers-participants must respect in order to operate the “vehicle” properly and avoid driving it into a ditch or depression. (Continue reading)