![]() The discussion here will remain at the theoretical level (see Mario 2020b Mario, A. Teoría Del Dinero Moderno y Empleador de Última Instancia. We will not address these topics here (for a detailed discussion, see Mario 2020a Mario, A. Arguing that, as a consequence, full employment should not be pursued is tantamount to keep using unemployment to control the price level.ġ Other critics argue that it would imply substantial logistical problems generated due to the cyclical fluctuations in participation in the program and/or that all the benefits of ELR could be achieved through a basic income (BI), without the negative impacts imposed by the ELR in terms of coercion to work. Implementing an ELR program could result in an increase of the price level as measured by some index. The author argues that, ultimately, it is the definition of full employment that seems to be the key when discussing the feasibility and desirability of an ELR program. Most criticisms of MMT emphasize the inflationary consequences of full employment policy. Unfortunately, they are seldom considered as a whole by critics. ![]() Along with a zero interest rate policy, these prescriptions constitute MMT’s base case for analysis. The ELR is a policy option in which the government offers a job to anyone willing and able to work at the program's wage. According to Modern Monetary Theory, a country that issues its own floating currency -and has no foreign exchange denominated debt- can simultaneously achieve both full employment and price stability through an Employer of Last Resort.
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