This is the short video of Mario Draghi’s mention of MMT: https://youtube.com/watch?reload=9&v=2M1jcnQi8eg&feature=youtu.be
(hat tip to Professor Andrea Terzi)
Draghi: the ECB should look into helicopter money and MMT
In response to MEP Philippe Lamberts, Mario Draghi replies that alternative ways of channeling money into the economy would probably be more effective in allocating money, and they should be looked at by the ECB.
In particular, Draghi refers to a recent paper in which Professor Stanley Fischer and others argue for helicopter money: https://www.blackrock.com/corporate/l…
Isn’t a fundamental principle of MMT that a country has to be able to create the money. EU countries do not create their own money & r on fixed exchange rate Euro that is created by ECB. Wont’ this create bigger sovereign debts, which will cause inflation??
For purposes of understanding the monetary arrangements, think of the euro member nations like the US states, the ECB like the Fed, and the euro parliament like Congress.
2019 ira. 25