meierlde
Thinks s/he gets paid by the post
The principles of it are (from the Wikipedia Article below)
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MMT's main tenets are that a government that issues its own fiat money:
The only disagreement between this and mainstream economics is the question of if government borrowing pushes up interest rates. With this theory defict spending is ok. Another line is " Because the government can issue its own currency at will, MMT maintains that the level of taxation relative to government spending (the government's deficit spending or budget surplus) is in reality a policy tool that regulates inflation and unemployment, and not a means of funding the government's activities by itself. " This theory does completly away with the idea of budget balancing being a goal in and of itself. " As the article says it turns the idea of austerity on its head.
https://en.wikipedia.org/wiki/Modern_Monetary_Theory
"
MMT's main tenets are that a government that issues its own fiat money:
- Can pay for goods, services, and financial assets without a need to collect money in the form of taxes or debt issuance in advance of such purchases;
- Cannot be forced to default on debt denominated in its own currency;
- Is only limited in its money creation and purchases by inflation, which accelerates once the real resources (labour, capital and natural resources) of the economy are utilized at full employment;
- Can control demand-pull inflation[13] by taxation which remove excess money from circulation (although the political will to do so may not always exist);
- Does not compete with the private sector for scarce savings by issuing bonds.
The only disagreement between this and mainstream economics is the question of if government borrowing pushes up interest rates. With this theory defict spending is ok. Another line is " Because the government can issue its own currency at will, MMT maintains that the level of taxation relative to government spending (the government's deficit spending or budget surplus) is in reality a policy tool that regulates inflation and unemployment, and not a means of funding the government's activities by itself. " This theory does completly away with the idea of budget balancing being a goal in and of itself. " As the article says it turns the idea of austerity on its head.
https://en.wikipedia.org/wiki/Modern_Monetary_Theory