International Journal of Social Science & Economic Research
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Title:
A Critical Reappraisal of Modern Monetary Theory

Authors:
Ashutosh Sharma, Johnson Okebulu Kalu , Mohit Sain and Vinit Vithalrai Shenvi

Journal: International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume: 10
Issue: 6
Publication Date: June 2025
DOI: 10.46609/IJSSER.2025.v10i06.014

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Ashutosh Sharma1,*, Johnson Okebulu Kalu2 , Mohit Sain3 and Vinit Vithalrai Shenvi4
1,2. Fisher College, Boston, USA
3. Independent Researcher, Bangalore, India
4. M.S Ramaiah Institute of Technology, Bangalore, India

MLA 8
Sharma, Ashutosh, et al. "A Critical Reappraisal of Modern Monetary Theory." Int. j. of Social Science and Economic Research, vol. 10, no. 6, June 2025, pp. 2106-2118, doi.org/10.46609/IJSSER.2025.v10i06.014. Accessed June 2025.
APA 6
Sharma, A., Kalu, J., Sain, M., & Shenvi, V. (2025, June). A Critical Reappraisal of Modern Monetary Theory. Int. j. of Social Science and Economic Research, 10(6), 2106-2118. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i06.014
Chicago
Sharma, Ashutosh, Johnson Okebulu Kalu, Mohit Sain, and Vinit Vithalrai Shenvi. "A Critical Reappraisal of Modern Monetary Theory." Int. j. of Social Science and Economic Research 10, no. 6 (June 2025), 2106-2118. Accessed June, 2025. https://doi.org/10.46609/IJSSER.2025.v10i06.014.

References
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ABSTRACT:
This paper critically evaluates Modern Monetary Theory (MMT), acknowledging its insights into sovereign currency mechanics while exposing fundamental flaws in its theoretical assumptions, institutional analysis, and policy prescriptions. It argues that MMT's core tenets, particularly regarding unlimited deficit spending, the role of taxation, central bank independence, and the dynamics of private credit, are incomplete and often misleading. This paper introduces an alternative framework: the Sovereign Wealth and Thermodynamic Monetary Framework which aims to re-anchor money to tangible assets, emphasize the entropic consequences of unchecked fiat issuance, and propose a more robust approach to monetary governance and sustainable development that is applicable across diverse national contexts.

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