#modernmonetarytheory

MODERN MONETARY THEORY, Basic Principles – Bill Mitchell.

Any economic system, short of slavery, requires productive resources to be transferred, through free will, taxation, from the non-government sector to the government sector in order to do the work of the latter.

The state, generally through its designated agent, the central bank, is the sole supplier of that which it demands for payment of taxes, it’s fiat currency. The taxpayers do not have the…

Modern Monetary Theory, MMT, in a Nutshell – Johnsville * MMT, a quick start guide – Modern Money Theory: Deadly Innocent Fraud #1. Government Must Tax To Spend. – Warren Mosler.

“It is the neoclassical orthodoxy and others who try to make out that we can’t use resources, even if they are available, because of some magical, mysterious monetary or financial constraint. Just who is it that believes in magic here?

Operationally, federal spending is not revenue constrained. All constraints are necessarily self imposed and political. And everyone in Fed operations knows it.

Why is MMT so popular? – Simon Wren-Lewis.

Although MMT has been around for some time, it recently held its first international conference and has in the last few years attracted a devoted band of followers online. According to an article in The Nation, it has ‘rock star appeal’.

There are short and simple explainers around, but what these and MMT followers are typically not so good at is in explaining exactly why and how they differ…