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Editor's note: Originally published at tsi-blog.com on May 4, 2020.
In a blog post on 31st March I argued that MMT (Modern Monetary Theory) had been surreptitiously put into practice in the US. However, according to a quote from Lacy Hunt (Hoisington Investment Management) included by John Mauldin in a recent letter, what the Fed and the US government are doing doesn't qualify as MMT.
According to Lacy Hunt: "For the Fed to engage in true MMT, a major regulatory change to the Federal Reserve Acts would be necessary: The Fed's liabilities would