Title: The COVID-19 pandemic and the contributions of modern monetary theory

Authors: Arturo Hermann

Addresses: Italian National Institute of Statistics (Istat), via Cesare Balbo 16, 00184 Rome, Italy

Abstract: The present situation linked to the COVID-19 pandemic has fostered a general rethinking of how economic theories can inform an effective policy response. In such a context, perhaps no theory has been brought more to the test than modern monetary theory (MMT). As a matter of fact, MMT, by positing that governments can always create their currencies, seems particular apt for dealing with COVID-19. We will briefly address MMT, and focus on how MMT insights can be employed not only for today's emergency but also for building a new sustainable economy. Some conclusions about economics education will follow.

Keywords: modern monetary theory; MMT; supranational policies; the Keynesian 'euthanasia of rentier'; social valuing; interdisciplinarity.

DOI: 10.1504/IJPEE.2021.118145

International Journal of Pluralism and Economics Education, 2021 Vol.12 No.1, pp.60 - 66

Received: 25 Jan 2021
Accepted: 05 Jun 2021
Published online: 13 Oct 2021 *

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