Modern Monetary Theory

What is MMT and how could it completely change your perception of life in a nation with a sovereign fiat currency?
MMT - What is it anyway??
"I've heard it called the Magic Money Tree"
"If we just keep printing money, we'll devalue the dollar!"
"Printing money will cause inflation!"
"OhEmGee the National Debt!!"

We've all heard loads of rumors...now it's time to get the truth!

Use the arrows or swipe through the slides to learn more.
Modern Monetary Theory or MMT
MMT is just a description of how sovereign fiat, floating exchange rate currencies like the US dollar actually work. MMT helps us move past the outdated gold-standard thinking that hasn't been right for decades.

It's not something to implement someday, it is exactly how our money works TODAY!!
Sovereign currency issuers...
Many governments issue their own currency. The sovereign issuer of a nation’s currency is nothing like the users of its currency - such as households, businesses, or state and local governments.

The currency issuer is not constrained to balanced budgeting in the same way as a currency user.
Government Solvency
Sovereign governments can never run out of the currency they issue.

No matter what politicians or talking heads on TV say, when a country issues its own sovereign currency, it can never run out.

That would be like the scorekeeper in baseball running out of points! Crazy, right?
Taxes and Federal Spending
Federal taxes are not collected in order for the government to spend later. They are actually deleted out of existence!

As a matter of fact, in order for us to pay taxes in the first place, the government, the CURRENCY ISSUER, has to create (or spend into existence) the money. Then, we CURRENCY USERS have to find a way to get some money to pay our taxes.
The National Debt
It is not possible for a currency issuer to go broke.

Most governments, most of the time, will run fiscal deficits. This is not a matter of concern, and is indeed a good thing, as it means most private sectors will be able to run the financial surpluses they wish to add to their net savings.

The government’s deficit is our surplus – we should be glad all that money hasn’t been taxed out of the economy!
Where Do I Learn More?
Look through our collection of articles below to learn more! They are conveniently categorized and there are plenty of resources from MMT Beginner to Macroeconomics Expert level.
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  • All Articles
  • Federal Debt
  • MMT 101
  • MMT Academics
  • MMT Rebuttal
  • Taxation
All Articles
  • All Articles
  • Federal Debt
  • MMT 101
  • MMT Academics
  • MMT Rebuttal
  • Taxation
cheering crowd

Why MMT Progressivism is the Real Populism

Today’s “populists,”—both right and left—appear to believe that virtually anything the U.S. federal government does is an oppression of individual liberty, private rights and local …

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view of architecture inside federal reserve bank

Truths and Myths of the Federal Reserve

Is the Federal Reserve an almighty-like “creature” or rather extremely limited in its essential operations? L. Randall Wray, an expert on monetary policy, answers questions with regard to the Fed and central banks in general.

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Glider flying under sunset clouds

The Aerodynamics of Chartalism

Critics of MMT often say, “but it’s only ‘chartalism’”—as if chartalism, itself, were a discredited explanation of reality that inherently discredits Modern Money Theory.

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Tax forms on a desk with a calculator and pen

Four Purposes of Federal Taxes

Beardsley Ruml wrote in 1946 that taxes for revenue are obsolete. So what ARE they for?

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Shooting Down Deficit Hawks

Deficit hawks, like dive-bombing kamikazes, are out now again, circling the battleship of our collective efforts to save ourselves. What can we do?

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Rethinking Fiat Money

This may sound like the plot for a Dickensian novel but, in fact, it is a precise description of what I think of as rethinking the reality of modern fiat money—a rethinking that enables collective society to achieve the full potential of its profit-making and not-profit making endeavors.

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Macroeconomic System for Climate Change

Enables a sovereign government to spend whatever fiat currency is necessary to enable and assist its collective society to mitigate and adapt to climate change.

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Why we need to debunk the 'deficit myth' - BBC REEL

Government spending is increasing at an unprecedented rate to deal with the effects of the coronavirus pandemic. Many people worry this could burden future generations.

However, economist Stephanie Kelton, author of The Deficit Myth, argues that we need to rethink our attitudes towards government spending.

Could Modern Monetary Theory help us navigate our way out of this crisis – and even help build a fairer economy?

Producer: Dan John
Animation: Jacqueline Nixon

(Republished with permission from the BBC)

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