eli5 What is Modern Monetary Theory?
In: Economics
MMT posits that a nation that prints it own money, (i.e. a monetary sovereign) can not go broke. They also say that the sovereign deficit is not the indicator to watch but price inflation. The sovereign can pump endless amounts of money into the system as long as inflation stays at tolerable levels (roughly 2%)
I don’t know if I buy it completely but it makes some interesting points.
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