Modern Monetary Theory - MMT

What is MMT and how could it completely change your perception of life in a nation with a sovereign fiat currency?

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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 MMT helps us move past the outdated gold-standard thinking that hasn't been right for decades.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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Browse our MMT focused articles and filter them using the tabs at the top to find a specific topic.

Browse our MMT focused articles and filter them using the dropdown tab at the top to find a specific topic.

  • All Articles
  • Federal Reserve
  • Hyperinflation
  • Inflation
  • Job Guarantee
  • MMT 101
  • MMT Academics
  • MMT Rebuttal
  • National Debt
  • Social Security
  • Taxation
All Articles
  • All Articles
  • Federal Reserve
  • Hyperinflation
  • Inflation
  • Job Guarantee
  • MMT 101
  • MMT Academics
  • MMT Rebuttal
  • National Debt
  • Social Security
  • Taxation

Understanding MMT is Easier Than You Think

It’s not ‘advanced economics’, it’s ‘realistic economics’.

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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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Towards a Libertarian/Austrian Modern Money Theory

Any time there is an MMT post, the comments are dominated by conspiracy theorists, haters of government, goldbugs, and victims of alien probings who are certain that MMT-ers are united in their effort to ramp up government until it consumes the entire economy.

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The Untold… of Money from Gold

A timeline of the monetization of our country; the impetus of the national debt, and how various state and federal banking systems, with Congress’ help, shaped our country’s economics.

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dollar back

The Truth About ‘Printing Money’

If government spending is just “printing money” then taxing is simply “unprinting money”. It’s a circuit.

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THE SHIFT: Understanding and Using America’s Fiat Money

The importance lies in a profound conceptual shift about what money isand how a modern, democratic society can use that new understanding to address public needs and pursue collective goals.

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The Public Banking Act

Banking is social infrastructure, and is intimately dependent upon public support and regulation. To that extent, public banking is not ‘extreme’ or an ‘aberration’. To the contrary, it restores banking to its proper role as a tool of public development.

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icon of the Federal Reserve

The Problem With How We Talk About the US Debt

We have a big problem with the way the media reports on the national debt.  It’s unclear if they don’t understand how federal debt works, …

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Shop door with We Accept EBT sign

The Price of Hunger

Inadequate access to nutrition is a problem Americans can solve. It’s time to shut down the false narratives about pay-fors that keep solutions out of reach.

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The Perfect Fiscal Storm: Causes, Consequences, Solutions

Understanding how federal finance works makes for better predictions and sensible policy.

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brown bag lunch on a school desk with a blackboard in the background with a heart drawn on it in chalk

The Oppressive Free Lunch

If progressives would just make the effort to inform themselves how a modern, sovereign fiat currency actually functions, they’d realize “paying for it” is actually the easiest part.

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Memes for Sharing

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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Modern Monetary Theory and Economic Justice

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Modern Monetary Theory and Democracy

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Modern Monetary Theory - Health and Wellbeing

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