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MODERN MONEY THEORY: Is this the Next Step?
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Published 4 years ago
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Link to the Slides and Sources: https://www.itmtrading.com/blog/modern-money-theory-next-step-lynette-zang/

The recent about face by global central banks shows the world that they have used up the experimental tools created during the 2007 financial crisis. In addition, they’ve made it clear, the free money punch bowl will NOT be taken away and they will not be raising interest rates. In fact, not only will central bank balance sheets not be reduced, but central banks are prepared to provide banks all the free money they may need in the future. This news has provided stock markets push higher into overvaluation territory, as the flood of Unicorn IPOs take advantage of this last hurrah to cash out and transfer risk.
Everyone knows the next financial crisis is near, so what are Central Banks likely to do then? I think they will likely employ Modern Money Theory (MMT) because frankly, current policy is already doing most of what MMT proposes, so the shift will not be radical.

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