What Does Modern Monetary Theory Offer?

Review article

Marko Grdešić ; Faculty of Political Science Zagreb

Fulltext: croatian, pdf (312 KB) pages 99-118 cite

This article provides an overview of Modern Monetary Theory (MMT). This approach to economic policy emphasizes the autonomous role of the state, its monopoly status in terms of issuing currency and its ability to provide full employment via a job guarantee. The article presents the main theoretical and policy elements of MMT, followed by the main criticisms stemming from liberal, Keynesian and Marxist perspectives. Additionally, this article discusses the possibility that peripheral countries, like Croatia, apply the economic tools suggested by MMT. Given that MMT has transitioned from the relatively marginal terrain of academic debates onto the terrain of more visible public discussion, one can expect that it will be able to shape the economic agenda in coming years.

Modern Monetary Theory; Keynesianism; Postkeynesianism; Neoliberalism

Hrčak ID: 245636