Economic critique challenges Modern Monetary Theory and monetarism

An analysis of economic theories suggests that Modern Monetary Theory (MMT) and Milton Friedman’s monetarism are both flawed. The argument posits that the global circulation of the U.S. dollar contradicts the idea that monetary authorities simply “print” money to fund governments.

The text asserts that the true limit to money in circulation is not controlled by central banks or treasuries, but rather by the level of production. It argues that money in circulation mirrors production, meaning it is inherently inconsistent. Furthermore, the text suggests that monetarism is not a true free-market notion but rather a variation of Keynesianism, as both frameworks link changes in money supply or government spending to growth and inflation.