March 27, 2020

Modern Monetary Theory (MMT): from theory to practice

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In Short

Virus still spreading. First, the sanitary situation: still worrying. The total numbers of recorded Covid-19 cases is now over half a million, and the number of deaths close to 25k. Contagion from east to west continues, with the US now the center of attention: the country has more reported cases than China.
Modern Monetary Theory (MMT): from theory to practice
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Virus still spreading. First, the sanitary situation: still worrying. The total numbers of recorded Covid-19 cases is now over half a million, and the number of deaths close to 25k. Contagion from east to west continues, with the US now the center of attention: the country has more reported cases than China.

The total number of cases (world) has grown at an average daily pace of 13% in the week to 26 March, 5 points faster than the previous week. One bit of positive news, however: confinement measures seem to be working, with the number of cases in Italy now growing at less than 8% per day, down from about 15% just a week ago.

The United States are about 15-20 days behind Italy, so there is hope that in a couple of weeks percentage growth will also start to slow there. This is not for sure: social distancing in the US does not seem as severe.

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