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Jim Grant: The trouble with modern monetary theory

The view that debts do not matter is, in the words of the great Scottish philosopher David Hume, ‘buncombe’

Jim Grant: The trouble with modern monetary theory
Photo: Getty Images

Modern monetary theory is not so theoretical anymore. In all but name, it’s the description of Republican fiscal policy in this living moment.

“Federal Borrowing Soars as Deficit Fear Fades,” said the headline on page one of Tuesday’s Wall Street Journal. For the second year in a row, the Trump administration is spending $1tn more than the government expects to extract from the taxpayers.

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