The scope of MMT work in support of the climate movement proves that the climate movement finds a natural economic ally in MMT
Modern Monetary Theory highlights that almost all nations have more fiscal space (AKA government spending power) than they currently use. This simple observation supports the climate movement’s demand for stronger government action, particularly from governments in the Global North.
MMT’s support for stronger climate action is both historic and broad.
Below are twelve examples of the connection between MMT and the climate movement.
The scope of MMT work in support of the climate movement
Finding The Money (2024). The highest-profile MMT film dedicates its final section to the climate crisis. It is available for free on YouTube.
LINK: https://www.youtube.com/watch?v=DLV20HwUUVk
On Thursday, 3rd October 2024, IIPP hosted a screening of Maren Poitras’ film “Finding the Money”. The screening was followed by a panel discussion with Josh Ryan-Collins, Patricia Pino, and Zack Polanski, chaired by William Thomson. You can watch the discussion here:
LINK: https://www.youtube.com/watch?v=BMWLkAGJpYA
Sections include:
- The similarities and differences between the US and the UK.
- How the film’s key message translates to the UK context.
- What stands out about the film and its approach to Modern Monetary Theory (MMT).
- How can MMT become more than just an academic idea and be applied in practice and policy?
Fadehl Kaboub is a leading voice in the Global South fight for fair and just climate finance and provided guidance to the Tunisian delegation on climate finance at COP 29.
“Economic and Monetary Sovereignty in 21st Century Africa”
LINK: https://www.plutobooks.com/product/economic-and-monetary-sovereignty-in-21st-century-africa/
In 2023, Torrens University in Adelaide launched a Master’s programme, Economics of Sustainability, based on MMT and Ecological Economics. Over 100 students have taken the course.
LINK: https://www.torrens.edu.au/courses/business/master-of-economics-of-sustainability
A growing number of ecological economists use MMT to underpin their understanding of money creation.
Ecological Economist Phil Lawn speaks with the MMT podcast and links a better understanding of the monetary system to climate action.
LINK: https://www.youtube.com/watch?v=C1fADca5BKc
Ecological Economist Joshua Farley on MMT. “Eco-Currency and Sustainability: A Case of the Atlantic Forest.”
LINK: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4524897
Academics, including Jason Hickle and Colleen Schneider, detail the connection between MMT and climate issues, paraphrasing J.M. Keynes in “How to Pay for Saving the World: Modern Monetary Theory for a Degrowth Transition” (2023).
LINK: https://www.sciencedirect.com/science/article/pii/S0921800923002318
Dirk Enhts (2024) ‘A Simple Guide to the Monetary System’ includes a chapter detailing how MMT supports a Green New Deal, Inequality and Climate Justice, and an economic Bill of Rights.
LINK: https://www.academia.edu/120162975/Modern_Money_Theory_A_Simple_Guide_to_the_Monetary_System
The Elgar Companion to Modern Money Theory (2024) discusses government policies to reduce emissions.
Professor Richard Murphy, who co-wrote the original Green New Deal in the UK, also sees the clear connection between climate policies and MMT. Professor Richard Murphy explaining his take on MMT.
LINK: https://www.taxresearch.org.uk/Blog/2024/09/07/what-is-modern-monetary-theory-2/
MMT proponent Professor Steve Keen is a fierce critic of the work of neoclassical economists in the climate space, and his (2025) book ‘Rebuilding Economics From The Top Down” contains two chapters dedicated to MMT in support of the ecological crisis
LINK: https://profstevekeen.substack.com/p/manuscript-of-rebuilding-economics
Ndongo Samba Sylla often links economic sovereignty and other MMT ideas to the Global South’s capacity to respond to the climate crisis. “Africa Needs Economic Sovereignty.”
LINK: https://www.rosalux.de/en/news/id/47802/africa-needs-economic-sovereignty
In ‘Economics for Sustainable Prosperity’ (2018), MMT economist and ‘recovering orthodox economist’ Steven Hail lays the foundations for sustainable prosperity within modern monetary theory.
LINK: https://link.springer.com/book/10.1007/978-3-319-90981-3
NB: Access to some of these links may be restricted.
Mainstream economics is no friend of the climate movement
Key points and takeaways:
- Support for more climate action comes from a broad spectrum of heterodox schools, including Ecological Economics, Feminist Economics, Degrowth, Institutional Economics, and Modern Monetary Theory.
- Mainstream assumptions that treat governments as financially constrained—rather than resource-constrained—stymie the climate response.
- The evidence that governments have greater fiscal space is as clear as the science informing the need to respond to the climate crisis.
- This brief list of resources indicates that MMT supports and empowers more sustained climate action.
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