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 MMT helps us move past the outdated gold-standard thinking that hasn't been right for decades.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 Academics
  • MMT Rebuttal
  • Taxation
All Articles
  • All Articles
  • Federal Debt
  • MMT Academics
  • MMT Rebuttal
  • Taxation

The Irresistible Allure of Debunking MMT Hit Pieces: A Response to Peter Diekmeyer

So, tell me who has ALREADY made out big from MMT? Special interests. The big campaign donors. Decidedly NOT the people.

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Republicans Against MMT Need To Take a Seat

A treatise, in answer to Katia Dmitrieva’s Bloomberg article on why the five Republicans against MMT need to take a seat, and why (AGAIN) we the People need to know how our economy really works.

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MMT Detractors are the Ones Who are Flirting With Disaster

Do not forgive them, for they know just exactly what they do.

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Taxes

Short poem on taxes and MMT. Learn the truth!

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That Thing You’re So Afraid of is Already Here

…And it could save your life.

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We Are Already Doing More Than Just ‘Seriously Discussing’ MMT

Once you stop being afraid, you can objectively learn.

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Modern Monetary Theory – A Presentation for the Lavender Greens

The only constraint on spending by the US federal government is resources. Or, as Dr. Stephanie (Bell) Kelton puts it, the federal government can buy every American a pony, if we breed enough ponies.

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Apolitical Descriptive Currency Analysis is Anything but Flamboyant in response to John Tamny

Tamny bandies about the discussion of resources as if MMT did not recognize the importance of the productive capacity of a nation. MMT clearly asserts that the real constraints of our economy are based on real resources.

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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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