CONTROVERSIES ABOUT THE APPLICATION OF MODERN MONETARY THEORY IN DEVELOPMENT ECONOMY: THE CASE OF BRAZIL (1996-2020).
Modern Monetary Theory (MMT), Development Economies, Brazil
Recently, the term Modern Monetary Theory, MMT (acronym in English), was rescued to show how sovereign governments do not face the same financial constraints as families and corporations to economic policy makers devise policies focused on welfare proposals social and environmental. MMT claims that it can be applied to all nations that issue their currency, regardless of their level of development, as long as that currency is demanded through the imposition of fiscal obligations. Since there is no consensus on this assertion in either the orthodox or heterodox fields, the purpose of this study is to examine the theoretical debate on the application of Modern Monetary Theory and the macroeconomic policy for developing countries such as Brazil. The contentious issues raise doubts about the appropriateness of MMT in developing countries. The main expected outcome of the study is to identify the scope and limitations (if any) of its application to the specific case of Brazil, as a first basis for understanding the path of modern money, the sectoral equilibrium approach and the MMT analysis logic. The work is a quantitative research with exploratory and analytical objectives, which will use the technical tools of bibliographic, documentary and survey research.