Bank of America: MMT Is A Recipe For Hyperinflation

Tuesday, April 9, 2019
By Paul Martin

by Tyler Durden
Tue, 04/09/2019

Having for years lingered in the fringes of economics as its carnival attraction (which, considering the recent track record of the dismal science isn’t saying much), MMT, aka Modern Monetary Theory, aka the “Magic Money Tree”, aka “The Free Lunch theory of economics” has exploded on the scene as politicians on the left saw it as a perfect platform upon which to build virtually unlimited promises in hopes of getting elected (see the Green New Deal).

In fact, interest in MMT has swept not only across the broader population but increasingly the world’s top legacy institutions, such as the IMF, with none other than the IMF’s chief economist addressing the disciples of the theory on Tuesday, warning not to expect a free lunch.

“Fiscal policy is a very important part of the tool kit for policy makers,” Gita Gopinath told reporters at a press conference Tuesday in Washington, following the IMF’s release of its latest, and weakest since the financial crisis, global economic outlook. “That said, there is no free lunch. There are limits to how much countries can spend.”

Incidentally she is not the first to use “free lunch” to describe the fundamental fallacies in the theory who core doctrines are summarized in the chart below.

The Rest…HERE

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