TOKYO—In the U.S., modern monetary theory—which, in its crudest form, suggests government deficits don’t matter—is still just an unorthodox doctrine debated mostly by economists and left-wing Democrats. But in Japan, MMT is at the center of a policy battle with imminent consequences: whether to proceed with an Oct. 1 sales-tax hike designed to trim the deficit.

Source: Wall Street Journal May 15, 2019 09:31 UTC