Wray V Edwards: A Discussion on MMT.
Recently, there has been a debate on whether economies should subscribe to the model of the Modern Monetary Theory (MMT). L. Randall Wray, an enthusiast of the Modern Monetary Theory, promotes the model in his 'Congressional Testimony: Reexamining the Economic Costs of Debts' as he refutes critics' claims of MMT dismissing the importance of government budget deficits. Wray's 'Congressional Testimony', to a moderate extent, succeeds in its intended objective in promoting Modern Monetary Theory. Meanwhile, Sebastian Edwards poses as the opposition towards Modern Monetary Theory through his 'Modern Monetary Theory: Cautionary Tales From Latin America' paper. Edwards' effort to dissuade interest from the Modern Money Theory succeeds to a somewhat extent, as the economist based his concerns of MMT upon the analysis of Latin American economies (like Argentina, Peru, Chile and Venezuela) use of macroeconomic populism in the 1970s. Summarizing: ...