How Covid Blew A Gaping Hole In Central Bank Policy
MMT or Modern Monetary Theory is the new orthodoxy embraced by all the major central banks. The idea is that governments that can borrow in their own fiat currency do not need to rely on tax revenues or debt to fund their spending. They can just print as much as they want. Q4 2020 hedge fund letters, conferences and more While this sounds great, ultra-easy money has been creating some unpleasant distortions. In response, central bankers have simply buried their heads in the sand, arguing the medicine their prescribing (zero interest rates and endless QE) is less bad than the disease. However, ...