Modern Monetary Theory’s View of Inflation: Does it Fit with Post-Pandemic Inflation?

Abstract The author analyzes in detail the Modern Monetary Theory (MMT) view of inflation and the criticisms it has received, and confronts these analyses with the recent evidence of post-pandemic inflation. The author concludes that most of the criticism that MMT receives is poor and unfounded and that, although MMTers tend to focus only on demand-side inflation, they actually have a fairly adequate view of inflation, which has allowed them to understand reasonably well the causes of post-pandemic inflations.