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> governments that operate them have the power to create demand for money out of thin air, through taxation. This is Modern Monetary Theory, but government nev
by lupire 4y ago
> governments that operate them have the power to create demand for money out of thin air, through taxation.
This is Modern Monetary Theory, but government never actually uses that power. Instead, they use "open market operations" on securities to manipulate money supply, and taxation for very roughly balancing spending.