Modern Monetary Theory

Are you interested in Modern Monetary Theory?

To what extent is MMT already being practiced – Quantitative Easing, Abenomics etc.  And what does the future hold if these new economic ideas increasingly take hold. While the theories appear quite simple on the surface, implementing and controlling the fiscal and monetary levers to make them work appear to be incredibly complex. What are the risks and what potential threats do they bring to the economy.  And what will the impact be on reserve currencies, cryptocurrencies and gold?

The article linked below by Ray Dalio of Bridgewater Associates provides an excellent and thought provoking look into MMT and is well worth the read. 

https://info.axisgroup.insure/hubfs/Axis_Insurance_Managers_Clive_Bird_MMT_Ray_Dalio.pdf

I would be more than pleased to receive your comments and thoughts.

Ryan Meyer

Senior Underwriter

5 年

MMT certainly has the potential to make, what was once perceived as prudent, imprudent. The ramifications are both terrifying and exciting; the concept requires faith, belief and continued support, much like religion and pyramid schemes. No matter who you are or what you do, unless you grow 100% of your own food, this is a subject that will impact you and should be followed closely.

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Alan McNulty

Broker: Specialty Markets & Products - Legear Pelling Insurance Agencies Ltd

5 年

Dalio, we all know, is an investment genius. His two major works are Principles (2017) and How the Economic Machine Works...(2007) probably the best, actually better, analysis since Keynes (Dalio is a much better investor) on the macroeconomy. His insight on the role and (historical) importance of debt is a revelation. Recently he has expressed, can we call it in climate parlance, an (income or wealth) “inequality emergency?” He is wrong, failing to understand the economic sourced reasons for his own success (that incorporate and express his talent and genius). More importantly how ostensible inequality ( its really a statistical variance and that is not unequal just dispersion of result) “resolves” itself long term. It regresses to the mean (average). Ray is giving most of his money away when he dies.

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