One of the most interesting debates blowing up the econ blogosphere is between mainstream macro and modern monetary theory (MMT) (see
here,
here,
here, and
here). MMT seems to flip the conventional wisdom surrounding money, banking, and monetary and fiscal policy on its head—the federal government, as the monopoly issuer of the currency, has no budget constraint; budget deficits
lower interest rates instead of raising them; and fiscal policy should be the primary tool used to achieve full employment.
