Learn · Economic schools
Economic schools compared: MMT, Keynesian, Austrian and more
6 min read
Compare the schools
| School | Money | Inflation | Government's role | Business cycle |
|---|---|---|---|---|
| MMT | A creation of the state; taxes drive demand for it | The real limit on spending; manage it with taxes and the job guarantee | Large: functional finance, job guarantee | Fight slumps with deficits |
| Keynesian | Important, but demand is what matters in slumps | Comes from excess demand; central banks handle it | Stabilize demand, especially in recessions | Driven by swings in total spending |
| Austrian | Should emerge from the market and not be expanded at will | A policy choice that transfers wealth | Minimal; skeptical of central banks | Booms from cheap credit cause busts |
| Monetarism | Its quantity drives prices | Always caused by too much money growth | Steady money-growth rule | Caused mainly by monetary mistakes |
| Gold standard | A fixed weight of gold | Low over the long run, unstable short run | Keep convertibility | Crises spread through gold flows |
| Cantillon effect | New money enters unevenly | Hits late receivers hardest | An idea, not a policy program | Relative prices distorted by injections |
Each summary is simplified; follow the links for the sources and the strongest arguments on each side. See also the Fed and our inflation tracker.
Bitcoin perspective
This section is perspective, not neutral analysis.
Bitcoin's design is closest to the Austrian and gold-standard views: a fixed supply of 21 million that no one can expand (MAX_MONEY). MMT and Keynesian economists see that same feature as a weakness, because money can't respond to a slump. You don't have to pick a school to use Bitcoin, but knowing the debate helps you judge the claims made about it.
Educational content only, not financial advice. See our disclosure.