Seminar organized by IMU Department of Economics, under the moderation of Res. Asst. Dr. İbrahim Kuran, Asst. Prof. Baki Demirel's presentation titled "Modern Monetary Theory and Pos-Keynesian Criticism" was held on Friday, 28th May.
DEMİREL started by explaining the historical background and foundations of Modern Monetary Theory and continued by detailing the propositions of the theory. Originally developed to explain the monetary logic in running budget deficits to support aggregate demand, Modern Monetary Theory was later developed by those who wanted to integrate the financial sector into the overall economic system in a more realistic and functional way within the framework of the financial instability hypothesis. The propositions of the theory are that the public spends first and then collects taxes, taxes are not an income item, public borrowing is made to absorb monetary expansion, etc. can be sorted. DEMİREL also touched upon the criticisms directed at the theory, after explaining the theory's view on monetary and fiscal policies, the concept of sovereign money and strong state in detail.
After the presentation, DEMİREL answered the questions of the participants. At this point, the applicability of this theory especially for Turkey was mentioned. Afterwards, the position of the theory in the literature was discussed by both the participants and DEMİREL.
