Tuesday, April 30, 2019

Billionaire Icahn Rips MMT, Warns It Could Lead to an ‘Inflationary Spiral’

Billionaire Carl Icahn says inflation could revive and spin out of control if policy makers were to embrace modern monetary theory, reports Bloomberg.

As Bloomberg explains. MMT argues that a country printing its own currency, such as the U.S., can’t go broke and has room to run larger budget deficits so long as prices are subdued.

“You can print money up to a point, but after that point, it could become very dangerous,” Icahn, 83, said in an interview. “We don’t want to hit a wall that you can’t recover from. Once you get into an inflationary spiral, it’s very difficult to get out of it -- and therein lies the danger.”

Good for Ichan, his view doesn't touch all the theoretical foundations of money, but his general warning his sound.


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