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UUP - The Theory Of MMT Falls Flat When Faced With Reality (Part II)
Invesco DB USD Index Bullish Fund
If you missedPart-1 of our serieson the “Theory Of MMT Falls Flat When Faced With Reality,”start there. In Part-2, we complete our analysis of the theory and the potential ramifications. The premise of our discussion was this recent explanation of“Modern Monetary Theory”by Stephanie Kelton.
As discussed previously, economic theory always sounds much better than how it works out in reality. The reason is that in “theory,” supply and demand imbalances always revert to previous norms. However, in “reality,” humans rarely act or react, according to theory.