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I don't think MMT means you can just print as much money as you want, just that conceptually you can decouple how to pay for government programs from how to red
by babyshake 3y ago
I don't think MMT means you can just print as much money as you want, just that conceptually you can decouple how to pay for government programs from how to reduce inflation.
- H8crilA 3y agoI think you meant "you can't decouple". The only logical thing in MMT was the promise to cut spending when inflation goes up. To which a rational response is that almost never you are able to cut back on social spending once you increase it.
- neilwilson 3y ago"To which a rational response is that almost never you are able to cut back on social spending once you increase it." You can once you have actually understood MMT. How is the price anchor managed under MMT theory? How does that work during a boom and thereby solves the problem you posit? What are the three system stabilisation mechanisms in MMT theory? MMT suggests moving the stabilisation policy from the market for money to the market for labour and leaving the market to determine interest rates. That stops the current problems - price gouging, SME decimation, boom/bust in construction and increased mortgage rates.