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 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 MMT helps us move past the outdated gold-standard thinking that hasn't been right for decades.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.

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
bankers at a table private banking

Money and Banking (Part 8 – The Private Banking Business)

The US financial system is extremely complicated and this series sheds light only on some corners of that system by focusing on the banking sector.

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Money and Banking (Part 7 – Leverage)

Given that the concept of leverage will be used often in the upcoming posts, this post spends some time explaining what leverage is and some of its impacts on the balance sheet of any economic unit.

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treasury federal reserve

Money and Banking (Part 6 – Treasury and Central Bank Interactions)

This post studies how the Fed is involved in fiscal operations and how the U.S. Treasury is involved in monetary-policy operations.

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classroom frequently asked questions federal reserve

Money and Banking (Part 5 – FAQs about central banking)

This post answers some FAQs about monetary policy and central banking.

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monetary policy binders

Money and Banking (Part 4 – Monetary Policy Implementation)

While details in operating procedures have changed through time, the federal funds rate has progressively gained in importance as a relevant operating tool since the 1920s.

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balance sheet banking federal reserve

Money and Banking (Part 3 – Monetary Base, Reserves, and Central Bank’s Balance Sheet)

Now that we have an understanding of how the balance sheet of the Fed works, it is possible to go into the details of how the Fed operates in the economy in terms of monetary policy.

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banking balance sheet federal reserve

Money and Banking (Part 2 – Central bank balance sheet and immediate implications)

Part 1 reviewed basic balance-sheet mechanics. This post begins to apply them to the Federal Reserve System (Fed).

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mortgage money banking balance sheet

Money and Banking (Part 1 – Balance Sheet)

If you cannot put your reasoning in terms of a balance sheet, there is a problem in your logic.

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RP Logo Red Flame

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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A magnifying glass, a ledger, money, and a calculator on a table

Modern Monetary Lens

The point has been to make it clear that using the MMT lens and choosing to look for public purpose solutions yields full employment and a path to a progressive society. 

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MMT: Report From The Front (Part 3)

The colorful commentary and spicy rebuttal of critics continues in part 3 of Randy Wray’s review of the 3rd annual MMT conference.

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MMT: Report From The Front (Part 2)

Comments and critiques from the front lines at the 3rd annual MMT conference – grab some popcorn!

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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

Economic Justice

Modern Monetary Theory and Environmental and Ecological Justice

Environmental & Ecological Justice

Modern Monetary Theory and Peace with Justice

Peace with Justice

Modern Monetary Theory and Equality with Justice

Equality with Justice

Modern Monetary Theory and Democracy


Modern Monetary Theory - Health and Wellbeing

Health and Wellbeing

Technology & Innovation - Modern Monetary Theory

Technology and Innovation

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