This is the Cato Daily Podcast for Sunday, April 24th, 2022.

I'm Caleb Brown.

How have advocates of modern monetary theory handled the notable rise in inflation

over the last year.

Jeremy Horpidol is a professor of economics at the University of Central Arkansas.

We spoke about how some MMT advocates have adjusted their monetary policy prescriptions, since high inflation has taken hold.

I've spoken with George Selgin about MMT, modern monetary theory, and I've had difficulty getting my head around a lot of what MMT proponents have been advocating for in your most charitable presentation. What are they asking for?

What is the way that we get to everyone is happy in the world through MMT?

Well, I think it's understandable that you'd be confused because

there are a number of economists and others writing under this general MMT tent. So it's

okay to be confused. But here's the basic as I understand it with regards to

inflation and debt and taxes which are things which everyone's talking about right now

mmmMT broadly says that the government should spend more

money until you get to full employment, at which point there then might be some inflation,

and you should take account of that

when you're deciding how much additional government spending there should be but

now we've reached a point where we have a lot of inflation and it seems like well this does not

disprove mmmm t it seems to be a problem for both cheerleading for the spending but

then when inflation comes just kind of throwing their hands up and

and having other solutions to how you deal with it.

Well, like what?

Things like price controls, things like some which I think are okay, so reducing tariffs is one thing some MMT people have said

...