A few months back, I wrote about a virtue of the MMT; namely, the way it focuses on sectoral balances. I think that this view is both interesting and useful for the contrarian investor. However, I do have some misgivings with the convictions of the typical Modern Monetary theorist. Here, I discuss some of the problems with the MMT frame of mind.

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This week’s update of the ‘inflation vs deflation’ indicators show that fears of deflation continue to make headway. That being said, extreme levels of deflation fears (versus inflation worries) are not present yet.

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