OMFIF’s most read 2020: The end of dollar supremacy, Modern monetary theory would produce chaos
Tuesday 29 December 2020 – Vol.11 Ed.53.1
The year’s top stories: Dollar supremacy at risk
By Philip Middleton in London
Empires rarely collapse overnight. Instead they crumble slowly before an external shock applies the coup de grâce. Historians charting the decline of the dollar may decide that the turning point was the week in 2020 which saw Congress debating how to send helicopter money paper cheques in the mail to its citizens, while China announced its test of a digital fiat currency.
(First published 26/8/2020)
Read the full commentary on the website.
The year’s top stories: Modern monetary theory chaos
By Otmar Issing in Frankfurt
MMT sets down that central banks will print all the money governments need: painless cost-free state financing. But MMT is an illusion that would lead to chaos. In principle an independent central bank can end the purchase of government bonds any time. But with increasing public debt, the consequences of rising interest rates on public finances would be dramatic. Central banks are caught in a trap partly of their own making.
(First published: 26/11/2020)
Read the full commentary on the website.
