The main idea of MMT is that since government creates money there are exactly no limits to how much money government can create. Back when money was backed by gold (say, with one ounce of gold being worth $20) there was a physical limit – by definition you couldn’t have more $20 gold coins than you had ounces of gold. MMT says, “Hey, since Nixon took the world off of the gold standard, we’ve been making up this money stuff anyway. So let’s go all in.” This is not exactly like a drunken 21 year old with Mom and Dad’s credit card in Las Vegas. Not exactly. The credit card has a credit limit.
January 20, 2021
The Post That Gave The World Bikini Economics: Why MMT Is A Bad Idea.
[It would appear that the U.S. is in the process of testing MMT.
We live in interesting times.—Joe]