Author(s): Sayan Banerjee
The role of the government and the central bank of a country in managing its economy has been one unending topic of debate among the economists and policymakers for many decades now. They are generally classified into the ‘Keynesian’ or the “monetarist’ school of thought. While the former school believes in the inflation unemployment trade-off, the latter believes it doesn’t hold true in the long run. However, in recent times another school of thought has been gaining some importance, known the Modern Monetary Theorists, who are in favor of a Keynesian style stimulation that is funded by freshly printed currency circulated by the central bank. This article makes an attempt to look deeper into the new approach and examine if such a proposal can really be the next big idea in the field of macroeconomic management.