Warren Mosler created Modern Monetary Theory from his examination of how the Federal government actually functions to create, spend, tax and borrow its sovereign currency. This site supports his extraordinary insight into those daily functions of our government's fiscal and monetary operations. MMT is not theory, philosophy or ideology, it's simply a description of how this "Money Thing" works.
However, there exists, today, a ruinous devotion to balancing the national budget. We see it in our elected officials, main steam media, TV pundits, and unfortunately, our academic elites and the general public. Fortunately, the Internet provides a mostly uncensored medium through which an infinite stream of opinions, facts, and hypotheses can be presented, debated, supported or, discarded. There also exists a plethora of academic and scholarly articles supporting and opposing MMT.
Here I take the heterodox position on monetary policy. That is, a sovereign government that issues its own floating rate, fiat currency is not revenue constrained. In other words, taxes are not needed to fund the government. It does not need to balance its budget since it does not need revenue when issuing its own currency.
I re-post articles that challenge and indeed contradict received wisdom about fiscal policy from government agencies, and other "self proclaimed authorities."
Thanks for spending a few moments examining the indisputable facts of monetary sovereignty.
No nation can tax itself into prosperity, nor grow without money growth.
Monetary Sovereignty: Cutting federal deficits to grow the economy is
like applying leeches to cure anemia.
1. A growing economy requires a growing supply of dollars
(GDP=Federal Spending + Non-federal Spending + Net Exports)
2. All deficit spending grows the supply of dollars
3. The limit to federal deficit spending is an inflation that cannot be
cured with interest rate control.
4. The limit to non-federal deficit spending is the ability to borrow.