Exploring Modern Monetary Theory and Economic Divergence

This chapter examines Modern Monetary Theory (MMT) and its implications for economic policy, particularly regarding fiscal stimulus and debt forgiveness. It contrasts the U.S. financial system with China's more effective economic management, highlighting the challenges of financialization and the urgent need for restructuring. The discussion raises concerns about current U.S. economic policies leading to austerity and emphasizes the potential dangers of forbearance programs in light of looming economic crises.