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How is it a test? MMT doesn't say you can increase monetary supply forever without consequence. It says that you can increase monetary supply until you see cons
by pkulak 5y ago
How is it a test? MMT doesn't say you can increase monetary supply forever without consequence. It says that you can increase monetary supply until you see consequences, at which point you need to start reducing it, mostly through taxation. Raising interest rates does reduce monetary supply, but I don't think nearly to the degree that MMT would call for.
Now, if congress immediately votes in a bunch of new taxes, it'll be a wonderful test. :D
- birdyrooster 5y agoMMT simply has currency scaling with the exponential utility of commerce. Value is created on both sides of each business transaction, not just for the recipient of the money. The money supply increases to reflect all of the new value created by commerce.