The MMT Framework For Thinking About Unemployment
Real Vision managing editor Ed Harrison welcomes Pavlina Tcherneva, associate professor of economics at Bard College, to discuss her views on Modern Monetary Theory, the role of the public sector, and thoughts on the FED’s approach to rising inflation. Modern Monetary Theorists believe that creating unemployment is not an efficient solution to prevent rising inflation. Tcherneva argues that there is nothing natural about unemployment in a stable economy, but states that there is a high social cost to unemployment in addition to the absence of income. The pair goes into the merits of unemployment and taxation as FED tools to stabilize the economy. Although the private sector is responsible for the majority of job creation, it is the responsibility of the public sector to ensure that the population is employed. Filmed on June 14, 2021.