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Kelton, S. (2020). The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy. Hachette Book Group.

has been cited by the following article:

• TITLE: Stability and Instability in the “Alternative Monetary Model” (AMM)

  AUTHORS: John Smithin, Eric Kam

  KEYWORDS: Inflation instability, Nominal policy rate of interest, Real policy rate of interest, ZRPR, ZIRP

  JOURNAL NAME: Theoretical Economics Letters, Vol.14 No.1, February 29, 2024

  ABSTRACT: This note clarifies some of the stability issues that arise in the consideration of alternative interest rate rules for monetary policy. The main finding is that a nominal interest rate peg leads to instability in the inflation rate (which can go in either direction) and general economic instability, whereas a real interest rate rule is conducive to stability.