There is no doubt that the on-going pandemic has left a trail of economic problems including major supply constraints, the growing problem of long Covid and other issues that are challenging policy makers. They have been exacerbated by the behaviour of OPEC+ and the Ukraine situation. We now have a period of inflation, real wage cuts and most central banks doing their best to make matters worse. However, we now have a phenomenon that goes like this. In the UK, everything ‘bad’ that arises is apparently because of Brexit even if the trends were there before the move or the problems are being shared across all countries. I imagine even if the English cricket team loses it is because of Brexit. This phenomenon has generalised however. Now, we have the claim that all bad economic news is because governments ‘followed’ MMT or something akin to it.
Please spare a thought today for those journalists who in 2020/21 aggressively hawked #MMT and – when #MMT stopped working – pivoted into hawking crypto, not realizing they were doubling down on the same trade: a bet on low interest rates and low volatility. Thoughts and prayers. pic.twitter.com/l0oEIpQegR
— Robin Brooks (@RobinBrooksIIF) November 9, 2022