MMT and inflation

The MMT solution to inflation is to lower interest rates. Because, you see, higher interest rates *are* a rise in prices. And, of course, MMT goes on to insist on printing more money. Because MMT does:

However, the criticism from President Erdogan is perhaps the most embarrassing, given his chequered history when it comes to monetary policy. In the last year, Turkish households have been forced to endure price hikes of almost 80pc because of Mr Erdogan’s unorthodox interest rate strategy.

Oh.

4 thoughts on “MMT and inflation”

  1. Must admit my favourite is still when the Il Khans of Persia printed money. They wouldn’t allow those disgusting plebs to pay their taxes with it.

  2. Can we just go with MMMT (Modern Motherfucking Monetary Theory)?

    Isn’t Turkey indexing lira deposits, so Turkish households maintain real purchasing power stability despite nominal price increases?

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