Introduction: MMT and the abolition of government bond issuance
One of the striking features of modern monetary theory is the proposals to abolish the (central) government bond market. In the current context, one wonders what difference such a change would make. I avoid trying to be a forecaster, but it’s safe to say that it wouldn’t be a real ‘surprise’ if key rates in developed economies remained below 1% for much of the 2020s. (This observation is…