George luo's personal site

Abstract: Modern Monetary Theory (MMT) has become a significant alternative to
traditional economic thought, challenging conventional views on fiscal and monetary policy,
particularly regarding government debt and deficits. MMT challenges traditional economic
frameworks by advocating for the government’s sovereign currency-issuing power to achieve
full employment and stabilize the economy without necessarily triggering inflation. This
paper explores the origins and development of MMT, highlighting key contributions by
economists such as L. Randall Wray, Stephanie Kelton, and Warren Mosler. The study
examines the application of MMT principles in countries like the United States and Japan,
analyzing the outcomes of MMT-like policies during periods of economic crisis. Through a
comparative analysis of fiscal and monetary policy, the paper argues that MMT offers a viable
framework for achieving economic stability and full employment, though it also raises
concerns about inflation and long-term fiscal sustainability. The findings also emphasize the
importance of strategic policy integration in a globally interconnected economic landscape.
Furthermore, this comprehensive analysis aims to contribute to the broader dialogue on how
governments can leverage economic theories like MMT to navigate complex financial
environments.

Keywords: Modern Monetary Theory, Fiscal Policy, Monetary Policy, Economic Stability.

This paper has been published in the proceedings of the ICFTBA 2024 workshop. Human Capital Management in a Post-Covid World’. Emerging Trends and Workplace Strategies.
(DOI: 10.54254/2754-1169/142/2024.LD18593).