Part 8/14:
The debate extends into macroeconomic philosophies, contrasting modern monetary theory (MMT) with Austrian economics. MMT, which claims that deficits don't matter because a sovereign country can always print more, is critiqued sharply, especially given that many countries experience hyperinflation—Turkey topping the list.
Conversely, the Austrian school emphasizes the importance of capital structure and sound money, warning that excessive money printing distorts interest rates and erodes real wealth over time. They argue that natural interest rates should be positive, reflecting human time preferences, and that negative interest rates are unnatural and unsustainable.