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RE: MODERN MONETARY THEORY - can anyone explain major differences between MMT and current monetary system?

in Project HOPE5 years ago

The beginning of the related Wikipedia post describes it quite well, IMHO:

https://en.wikipedia.org/wiki/Modern_Monetary_Theory

I think US, EU, and some other countries are applying this theory already in the practice - printing so much money as they wish. Employment is on very high level. So the great danger is inflation.
(I'm holding silver, platinum, some mining stocks and cryptos...)

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Modern Monetary Theory
Modern Monetary Theory or Modern Money Theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly for the government and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires. MMT is an evolution of chartalism and is sometimes referred to as neo-chartalism. Its macroeconomic policy prescriptions have been described as being a version of Abba Lerner's theory of functional finance.
MMT advocates argue that the government should use fiscal policy to achieve full employment, creating new money to fund government purchases.

 5 years ago  

Dear @deathcross

Thank you for always being so responsive.

So the great danger is inflation.

Exactly.

I seriously wonder how MMT would deal with inflation (losing fiat currency value). After all inflation is nothing but 'hidden tax', that can destroy economy and businesses. Just like tsunami would.

Also Im curious how countries following MMT monetary system would deal financially with those who stick to traditional/current ways. Something would surely have to change.

ps.2.
I would also like to take this opportunity to share with you one of my recent posts
, where I'm describing project.hope economy (I run it with few guys from steem). I would love, if you could invest few minutes and get familiar with our efforts and perhaps share your feedback (this is what I always care the most).

I'm not sure if I already did share this link with you. I hope Im not repeating myself.

Yours, Piotr