Financial Stability News

News about financial stability, central banking and theory of money


John Cassidy of the New Yorker had an interesting story about former Levy scholar Wynne Godley. He was very critical of the Euro project (even though he was in favor of more European integration). He was joined by several other Levy associates (many of which are associated with the so-called “Modern Money School” or MMT for short. They were all critical of the experiment to break the link between the Government and the institution of money. This blogpost claims they had their story right, as is unfortunately now being played out in Europe. However, many other economist in the US were also critical to the Euro “experiment”, see this article in the Economist from 1992 by Martin Feldstein.


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