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That's not the idea of MMT, it's a basic fact, hence the BoE publishing it.
by bidirectional 4y ago
That's not the idea of MMT, it's a basic fact, hence the BoE publishing it.
- lxgr 4y agoGood point – the ideas of MMT go further than that (and become more controversial as they do), but there is quite some overlap. I also don't think that there is consensus across central banks about how money creation actually works, which is pretty fascinating, considering that they all do more or less the same thing (at least the ones that aren't pegging their currency to another one), but apparently under completely different models...
- bidirectional 4y agoThere probably isn't a broad consensus among central banks on the whole ecosystem of money creation (nor among the economists in any particular central bank), but the things mentioned in that BoE article are really just trivial economic facts everyone agrees on. Banks create money by lending, has been that way since the ancients.