Online ISSN 2286-0266
Print ISSN 1223-0685
Copyright © 2019
Œconomica by SOREC
 
Silviu CERNA
Universitatea de Vest din Timişoara
A new economic theory – “Modern Monetary Theory” (MMT) – has been enjoying great success in the US lately and is often invoked in Europe. It is supported mainly by left-wing politicians and economists, who advocate for the further increase of the budget deficit, financed more by the creation of currency than by the issuance of government securities. The argument is that in this way the financial deficit of the state is easier to cover.

ŒCONOMICA no. 3/2019
Keywords: credit, government debt, budget deficit, interest, inflation, liquidity, currency, solvency, sustainability, monetary theory
JEL: B10, E59, E60, E61, E62
Modern Monetary Theory and Its Poisonous Implications [Teoria monetară modernă şi implicaţiile sale nefaste]