What Is Modern Monetary Theory, (MMT or Modern Money Theory) And Why Is It Important?

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PoliTalker

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cawacko has used a term in the forum he calls MMT.

I looked it up.

"Modern Monetary Theory (MMT or Modern Money Theory) is a heterodox macroeconomic theory that describes the currency as a public monopoly and unemployment as the evidence that a currency monopolist is restricting the supply of the financial assets needed to pay taxes and satisfy savings desires."

Modern Monetary Theory.

But of course! That's about as clear as mud. What the heck does THAT mouthful mean?

Perhaps a little discussion can help to provide a better understanding.

Anyone like to take a stab at translating the above sentence?

Thanks.

PoliTalker anti-troll thread thief disclaimer: If this thread is stolen, plagiarized, will the thief have the nerve to use the entire OP, word for word? Including this disclaimer? If you want my take on it, you'll have to post to this original PoliTalker thread. I refuse to be an enabler for online bullies, so I won't post to a stolen thread. I won't even read it. If you don't see me, PoliTalker, posting in this thread check the author. This might be a hijacked thread, not the original.
 
PoliTalker said:
cawacko has used a term in the forum he calls MMT.

I looked it up.

"Modern Monetary Theory (MMT or Modern Money Theory) is a heterodox macroeconomic theory that describes the currency as a public monopoly and unemployment as the evidence that a currency monopolist is restricting the supply of the financial assets needed to pay taxes and satisfy savings desires."

Modern Monetary Theory.

But of course! That's about as clear as mud. What the heck does THAT mouthful mean?

Perhaps a little discussion can help to provide a better understanding.

Anyone like to take a stab at translating the above sentence?

Thanks.

PoliTalker anti-troll thread thief disclaimer: If this thread is stolen, plagiarized, will the thief have the nerve to use the entire OP, word for word? Including this disclaimer? If you want my take on it, you'll have to post to this original PoliTalker thread. I refuse to be an enabler for online bullies, so I won't post to a stolen thread. I won't even read it. If you don't see me, PoliTalker, posting in this thread check the author. This might be a hijacked thread, not the original.
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Well my stab based on "the mouthful" is it is a theory that says we should just print a bunch of money, hyperinflation be damned.
 
Hello Nordberg,

Nordberg said:
Here you go. https://www.msnbc.com/velshi-ruhle/watch/what-is-the-modern-monetary-theory-1441424451688 It is a crappy theory equal to trickle down but its inverse.
Economics is not science. if it were there would be a great agreement on how to manage the economy. There are many schools and popular ideas that end up lacking success when initiated.
Click to expand...

Thanks for that. It was a pretty interesting discussion. I am still struggling to try to visualize how this works. It sounds pretty scary. If the solution to helping the nation grow is to simply print more money that will cause inflation. Then, to deal with that, taxes have to be raised. Higher inflation? Higher taxes? That doesn't sound very good. What does that do to all the people on a fixed income? What does that do to people who worked their entire lives to build a nest egg? All the money they worked so hard to save is now worth way less? And it doesn't buy as much? How does raising taxes help that?

I would say no. From my initial impression of MMT, I can't see how it could work.
 
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