The acronym MMT and all it entails should be renamed to OMT.
It's worked well for 100 years, giving higher living standards, increasing asset values, longer life expectancy, enormous tech advances etc but now the flaws are so obvious. Ultimately when it unravels, and it will unravel, recent beneficiaries of MMT will pay the price with crashing asset values.
The Old Monetary Policy will need to be replaced. Will it be MMT2?.
When MMT becomes destructive populations will panic, a new age will emerge and the shock will make this pandemic seem like a weak cold. We have seen how, when faced with the possible horror of a covid19 epidemic, Australians got behind the governments and placidly went along with all the bandaid cures put in place. Psychologically it seems we will submit ourselves to radical change quite willingly if we see no alternative.
How long before we see MMT dissolve? The asset bubble can go on much longer than one can imagine while CBs cling to normality but I believe we are in phase 2 of the start of change. We've had our pandemic, at a time of global stagnation, MMT has been used to throw stimulus into the global economy (some $15 trillion so far) so the last phase is the financial crisis possibly precipitated by global geopolitical issues that have arisen from the pandemic.
In years to come historians will look at this time and say the outcome of the events of 2020 were so obvious. What is obvious is that this all looks a little too familiar.
