So there’s this thing called MMT which essentially (vast oversimplification incoming) opines that the national debt is meaningless as long as we’re the dominant military power and everyone uses our currency (most large multinational trade deals are balanced with USD and most currencies derive a portion of their value from the country’s stockpile of USD). That theory has so far not been proven correct nor incorrect but we might be both 1) coming up on the first real test of MMT and 2) seriously breaking assumptions of MMT (BRICS has been investigating an alternative trade currency and Russia has a lot of oil and gas it wants to sell but USD sanctions have prevented).
Is MMT correct or fantasy? Well, a lot of MMT supporters are highly paid government employees whose employer really wants them to say it’s correct but we haven’t really been able to run an experiment on it or anything.
So there’s this thing called MMT which essentially (vast oversimplification incoming) opines that the national debt is meaningless as long as we’re the dominant military power and everyone uses our currency (most large multinational trade deals are balanced with USD and most currencies derive a portion of their value from the country’s stockpile of USD). That theory has so far not been proven correct nor incorrect but we might be both 1) coming up on the first real test of MMT and 2) seriously breaking assumptions of MMT (BRICS has been investigating an alternative trade currency and Russia has a lot of oil and gas it wants to sell but USD sanctions have prevented).
Is MMT correct or fantasy? Well, a lot of MMT supporters are highly paid government employees whose employer really wants them to say it’s correct but we haven’t really been able to run an experiment on it or anything.
MMT = what?
Modern Monetary Theory.
Thank you!