Ray Dalio Sees an Inevitable Shift to MMT

The video discusses the potential shift to a new form of monetary policy, termed 'Monetary Policy 3', which involves fiscal-monetary policy coordination. This shift is seen as inevitable due to limitations of traditional monetary tools and political pressures. The discussion highlights the challenges and risks of this shift, including the potential loss of central bank independence and the difficulty in addressing structural economic issues like inequality. The video emphasizes the need for careful consideration of these changes to avoid negative consequences.

What are the implications of shifting from traditional monetary policy tools during economic downturns?

What are the potential risks of placing monetary policy in the hands of politicians?

How does the speaker perceive the relationship between fiscal and monetary policy?

In what ways does the speaker believe monetary policy has failed to address income inequality?

What does the speaker suggest about the independence of the Central Bank?