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To the extent modern monetary theory is true, it is unoriginal; to the extent it is original, it is false

Since the financial crisis, central bank balance sheets and bank reserves have grown hugely, but broader monetary aggregates have not. 

The explanation is that the dominant driver of the money supply is the (risk-adjusted) profitability of lending, which is high in booms and low in busts. 

The weakness of credit also explains why inflation has remained low.

Martin Wolf FT 28 maj 2019

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