MMT is a type of post-Keynesian economics that has two distinctive components: (1) chartalism, a type of state money theory; and (2) functional finance, due to Abba Lerner, the idea that the role of taxes is not to finance spending but rather to inject or drain spending in order to ...
maintain full employment and output by spending more than they can raise in taxes. The evident failure of 'demand side' economics has at last reached the Keynesian economists. Some are beginning to reject 'demand side' economics as inadequate and to argue for the return of 'supply and demand...
The short-run Keynesian equilibrium approach provides insight into how remittances affect output and income, and its potential multiplier effects. The model used is indicative of a positive relationship between the marginal propensity to consume out of remittances and the multiplier. The framework also ...