Document Type

Article

Publication Date

2020

Identifier/URL

41589703 (Pure)

Abstract

This paper critically assesses the main contribution made by Modern Money Theory(MMT) and evaluates the validity of its policy proposal from a leftist-Keynesian and Marxian perspective. The paper argues that there is no logical consistency between MMTers' analysis of the nature of modern fiat monetary system and their government's job guarantee proposal. It is also argued that the proponents of MMT often fail to pay due attention to various real and financial constraints imposed upon many developing economies nowadays, while exaggerating the universal applicability of the sovereign state's money creation process. In addition, MMTers tend to ignore the fundamental class conflict nature of the capitalist state when they advocate the government's job guarantee program.
From a Neo-Kaleckian and Marxian point of view, it is not the government's employer of last resort (ELR) program, which operates outside the domain of private monopoly capitalist relations, but the need of fundamental transformation of the capitalist ownership structure that addresses major socioeconomic problems such as long-term involuntary unemployment and poverty.

Comments

This work is licensed under CC BY-NC 4.0

DOI

10.17964/rses.2020.33.1.45

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