April 22, 2025
Behind every significant economic decision lies a battle between two schools of thought:
Modern Monetary Theory (MMT) says governments should print and spend money freely, worrying about inflation later.
Austrian Economics argues that reckless spending leads to inflation, forcing painful corrections.
Since the 2008 financial crisis, the U.S. has leaned toward MMT, increasing deficits and relying on monetary stimulus. But will we be forced to pivot toward austerity if inflation stays high?
This shift would have major consequences for investors:
Tighter monetary policy could mean slower growth and lower market returns.
Inflation could remain persistent, requiring new investment strategies.
Interest rates may remain high, changing how portfolios should be structured.
If history is any guide, we may be at a turning point. Understanding these economic forces can help investors stay ahead of the curve. We break it all down in our latest article:
Outlook 2025—Lessons from the 1960s-70s for Today’s Investors
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