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IPFS News Link • Economy - International

The Neo-Marxist Roots of Modern Monetary Theory

• arclein

Entangled in their mathematical reformulations of a basic identity of macroeconomic accounting, the adherents of the Modern Monetary Theory lose sight of a big problem: the more a government spends, the less the private sector will invest. In other words: while there will be a private savings surplus, it is not the result of more savings but comes about because of falling investment. In the formal mode, the accounts balance, while the real economy sinks.


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