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MMT doesn't rely on preserving the reserve currency status of the dollar. It relies on a nation having monetary sovereignty, ie. being able to denominate its de

MMT doesn't rely on preserving the reserve currency status of the dollar. It relies on a nation having monetary sovereignty, ie. being able to denominate its debts in its own currency, and not other currencies. I'm not sure how that wouldn't be recognized since it's pretty much the central part of the theory. I don't believe it's the case that currency is only valuable if people have faith in it, and that's creating a false equivalency between shells, beads, crypto, and dollars. Dollars are a medium of exchange because they are legitimized by the government, primarily because they are the only thing you can pay your taxes in if you live in the US, which creates an ongoing demand for them. If we all decided to change to beads, for some reason, we'd still have to buy dollars to pay the US government.

junofan 4y ago
MMT is a deliberate conflation of monetary and fiscal policy. It’s bullshit. > Dollars are a medium of exchange because they are legitimized by the government, primarily because they are the only thing you can pay your taxes in if you live in the US No, they’re a medium of exchange because they have the desired properties due to collective belief (stores value through time, common unit of measure, subdivideable). If I could pay taxes in push-ups, push-ups wouldn’t be a medium of exchange. > If we all decided to change to beads, for some reason, we'd still have to buy dollars to pay the US government. No, the IRS would simply not be able to collect because there would be no USD market of any kind for seized property. Zero demand for dollars would be stable.