FMF FEATURE ARTICLE
Why ‘Modern Monetary Theory’ won’t work for South Africa – Tumisho Ramodisa
A ‘new’ economic school of thought has emerged and gained mass popularity over the recent years. Modern Monetary Theory (MMT), seeks to challenge the mainstream consensus across the economic spectrum. What exactly is MMT and could it work to address South Africa’s economic woes?
For starters, MMT recognises that the South African government is the sole issuer of the Rand, and consequently has a monopoly on the domestic currency. This statement is consistent for most countries, especially in the developed world.