I tripped over a misunderstanding of Modern Monetary Theory this morning in an Interview with Robert Prechter of Elliott Wave international, who in my view misinterprets just about anything macroeconomic; it was on Doug Casey's Take; but it was another interviewee, in this case, Matt Smith, who claimed that Washington has been captured by MMT & uses Quantitative Easing as evidence of that capture.
I went looking online & it appears that this misconception is not uncommon, equating MMT with QE.
I looked up Prof. Bill Mitchell's blog & found this post from 2019 which relates to Japan's use of QE since 1990.
https://billmitchell.org/blog/?p=42640
I would be most surprised if anyone with the faintest idea of MMT would consider QE to be one of its tenets. Government bonds not being an essential feature of macroeconomics, just a way of providing those wealthy enough to purchase them with an unearned income stream & by reducing bank reserves.
#MMT #QE