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0 pointsnoisefridge4y ago0 comments

I'm not an expert on MMT, nor a proponent. I don't have a sufficiently informed opinion to say whether it's good or bad.

But, I think what the US government is doing isn't MMT.

MMT proponents seem to be arguing that creating money is good if and only if you ensure it is spent on the right things - like infrastructure. Then you can get net wins for the economy.

According to MMT it's bad if you, for instance, create a situation where institutions, investors, and giant companies have an unlimited supply of dollars that never lose value.

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cjbgkagh4y ago

I've read up on MMT because it's politically important. The US govt is doing half of MMT (~0% interest rates), the problem is that the other half is somehow worse.

Reducing aggregate demand via discretionary interest rates to kill the demand from the gray market(i.e. non green-market). A savings account where individuals and businesses are forced to hold cash until inflation goes down. I.e. confiscation by proxy - by the time you're allowed to spend the money it will be worth much less.

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