, Columnist
Why Emerging Markets Are Wary of a Modern Monetary Fix
The Covid-crisis fashion for freely spending money is piling pressure on governments that perhaps can’t handle it.
A New Delhi cinema reopens. Will modern monetary theory have a happy ending in emerging markets?
Photographer: Vipin Kumar/Hindustan Times/Getty
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Modern monetary theory is suddenly everywhere. The idea that a government that can freely print and spend its own currency shouldn’t deny anyone a job is gaining currency in our pandemic-ravaged world.
Coming amid a sharp increase in public expenditure, Democratic presidential candidate Joe Biden’s $2 trillion clean energy plan shows a disregard for debt and deficits that was unimaginable after the 2008 subprime crisis.