Old wealth management and new wealth creation

Modern Money Theory (MMT) is the solution

Abstract

The discussion on monetary policy, currency and its nature returned to the center of the economic debate in Brazil and in the world. At the heart of the proposed debate are central issues, such as, for example, the impossibility of a sovereign government not honoring debts denominated in its own currency, the central proposition of ModernMonetaryTheory (MMT), in addition to putting into doubt what it was, until recently. above, basic assumptions of conventional economic theory. In this context, this article has two main objectives. First, it seeks to identify more precisely the theoretical frameworks that support two distinct views of what currency is in a fully developed capitalist economy. On the one hand, the view of the commodity currency, which incorporates the theoretical construction of classical political economy; on the other, the currency seen as a social institution, belonging to the Keynesian-Marxist theoretical framework. Second, it seeks to understand the main assumptions of MMT and its points of convergence and divergence in relation to the two views mentioned above. From the Keynesian-Marxist perspective, it is concluded that the theoretical approaches that treat states and markets as abstract entities, operating in ideal scenarios, far from the real economic, social and political conditions of the present moment, among which highlights MMT.