Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280737 
Year of Publication: 
2023
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 20 [Issue:] 1 [Year:] 2023 [Pages:] 90-124
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
This paper is focused on modern monetary theory's (MMT) treatment of inflation from an open-economy perspective. It analyses how the inflation process is explained within the MMT framework and provides empirical evidence in support of this vision. However, it also makes use of a stock-flow consistent open-economy model to underline some limits of the theory when it is applied in the context of a non-US (relatively) open economy with a flexible exchange-rate regime. The model challenges the contention made by MMT-ers that measures such as the job guarantee programme can achieve full employment without facing an inflation-unemployment trade-off.
Subjects: 
central banking
post-Keynesian
open-economy model
JEL: 
E51
E120
F410
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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