Jan 16 • 41M

Opportunity Cost and MMT

Modern monetary theory lessens the constraints on public spending, but does it also mean there’s less discipline on how resources are used? Phil Dobbie puts the question to Steve.

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Economist Steve Keen talks to Phil Dobbie about the failings of the neoclassical economics and how it reflects on society.ems-based alternative to mainstream economics
Episode details

Conventional economics is built around the idea of opportunity cost. If there is a limited resource a decision has to be made about how best to use it. How is that principle applied when you look at Modern Monetary Theory, when governments can create money without limits until you have reached a point of full employment. There is no need to look at one …

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