Modern Monetary Theory. Technically it’s just a description of how money works, but MMT people tend to advocate positions about increasing spending and that government debt isn’t actually a factor in the state of the economy.
Does anybody have anything other than an “introduction” to MMT? I find that everything I see stops short of answering the questions I have.
MMTers will say it’s just a new (more accurate) way to think about how the existing system works, but how does it effect a governments options for policy?
They will also say it’s not a license to spend recklessly, as the difference between money issued and money reclaimed drives inflation. This sounds like having a limit on a budget deficit / borrowing to me, so how is this different?
They will also stress that it means you don’t have to wait for growth (i.e. increasing tax income) to start government spending as spending is money creation. Fine, but it’s still a feedback loop, and after year 1 why does it matter where the loop started?
What is MMT?
Modern Monetary Theory. Technically it’s just a description of how money works, but MMT people tend to advocate positions about increasing spending and that government debt isn’t actually a factor in the state of the economy.
Modern Monetary Theory, this is a decent explanation about what it is.
Does anybody have anything other than an “introduction” to MMT? I find that everything I see stops short of answering the questions I have.