Yellen Says She’s ‘Not a Fan of MMT’ as List of Detractors Grows

By Enda Curran of Bloomberg.


"Former Federal Reserve chief Janet Yellen said she’s not a fan of modern monetary theory, saying its proponents are “confused” about what can fuel inflation in the economy.

Yellen took issue with those promoting MMT who suggest “you don’t have to worry about interest-rate payments because the central bank can buy the debt,” she said at an Asian investors’ conference hosted by Credit Suisse in Hong Kong. “That’s a very wrong-minded theory because that’s how you get hyper-inflation.”


The former Fed chair said she was “not a fan” when asked about the decades-old theory, which has gained recent traction in the U.S. particularly amid a run-up in government debt. Yellen joins a list of well-known names such as billionaire investor Warren Buffett and former U.S. Treasury Secretary Larry Summers who have said they’re opposed to the theory."