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I thought the US can already print as much money as they want without fear of soaring inflation due to $ being the global reserve currency. So why don't they ju

• phpisthebest 4y ago
  MMT was delt a massive blow by the current inflation issue.... They thought they could, then the Ghost of Hayak was heard laughing from Coast to Coast.
  • dragonwriter 4y ago
    > MMT was delt a massive blow by the current inflation issue.... MMT literally argues that the monetary/fiscal division is artificial, and that the only constraint on fiscal policy is the monetary impact of net spending in the context of whatever traditional “monetary” policy is pursued, when you operate in your own fiat. There being a monetary impact of either net spending or traditional monetary policy is not a blow to MMT.
• redeeman 4y ago
  the world is abandoning the US dollar as reserve and trade currency, this capability is being outphased faster than most people realize
• dragonwriter 4y ago
  > I thought the US can already print as much money as they want without fear of soaring inflation due to $ being the global reserve currency. No, that’s never been the case. If it was, loose monetary policy to prevent incipient deflation (which is exactly causing inflation compared to the status quo ante) wouldn’t work (and, conversely, leaving the loose money policy engaged too long would lead to inflation, like it did after the brief COVID recession.) The US having the ability to borrow in its own currency (which is closely related to the dollar being a global reserve currency, but slightly different) means that it always has the theoretical capacity to monetize the debt.