Ray Dalio on the Decline of Real Interest Rates (Podcast)
Masters in Business
00:00
Monetary Policy Three Is Not All That Modern
MMT is a version of what I call monetary policy three. When interest rates hit zero and you can't use that policy anymore, you go to monetary policy two. That causes financial asset prices to go up but it doesn't trickle down very much. It widens the wealth gap and it gets it into those who have financial assets. The government will allocate resources through fiscal policy that will be monetized.
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