Mohamed A. El-Erian , Columnist

Three Things to Keep in Mind About the MMT Debate

Modern monetary theory has sparked a fruitful conversation. Markets should be paying attention.

March 13, 2019 at 5:00 AM EDT

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

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Despite having been slammed by several prominent economists, policymakers and top Wall Street corporate leaders, modern monetary theory is not going away anytime soon. If anything, the debate over MMT will continue to fuel an interesting conversation among academics, politicians and policymakers. The more this happens, the greater the need for market participants to be aware of the following three issues:

1. The MMT debate will continue to be energized by the coincidence of multiple current and historical factors.

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