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Macro

Modern Monetary Theory and its Impact on Crypto

There are two types of investors: those who want to get rich and those who want to stay rich. To explain Modern Monetary Theory (MMT), we look at the investors who want to stay rich.

Investors who want to stay rich often look to the past to study market moves that haven’t happened in their lifetime but have happened many times in history. This study of past market cycles and current politics can help investors navigate the uncertain present.

When we zoom out and look to the past, we can see that there’s never been as much debt or as low interest rates as we have today.

Last year, the US budget deficit hit 33% of GDP, surpassing levels seen in WWII. Washington D.C.’s policies fueled Wall Street but left Main Street largely behind. We all saw the “BRRR” memes, but here we breakdown the mechanism of how MMT transfers to crypto prices.

First the basics... What’s Quantitative Easing (QE)?

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Mira was a Senior Research Analyst at Messari. Prior to joining Messari, Mira was a Senior Portfolio Manager for a US$6 billion Asia Pacific equities fund at APG Asset Management. Mira received a BA in Economics and Mathematical Methods in the Social Sciences from Northwestern University.

Mentioned Assets
Outline
  • What’s Modern Monetary Theory?
  • Isn’t inflation at 2%?
  • Can all countries do MMT?
  • Why do asset prices increase?
  • What's with Quantitative Easing?
  • Why is MMT bad for fiat?
  • How does it all end?
Author
Mira was a Senior Research Analyst at Messari. Prior to joining Messari, Mira was a Senior Portfolio Manager for a US$6 billion Asia Pacific equities fund at APG Asset Management. Mira received a BA in Economics and Mathematical Methods in the Social Sciences from Northwestern University.
Mentioned Assets