Modern Money Theory

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1. neilwilsonApr 2020
   Macroeconomics by Bill Mitchell (https://amzn.to/2XyoTrU)

   The go to text book to understand the mechanisms and mechanics behind Modern Money Theory.

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2. jganetskFeb 2018
   That's because the government's deficit is the people's surplus, by simple accounting identity. Paying off the debt would be catastrophic. Andrew Jackson did it, and 1 year later we had a financial crisis. Clinton gave us a surplus, which led to a financial crisis. It's very simple: either the government is in debt to the people, or the people are in debt to the governmet. The latter is a perverse situation.

   Please read about Modern Money Theory. https://www.youtube.com/watch?v=TDL4c8fMODk https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-...

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3. jganetskFeb 2018
   It's a widely held misconception that the government needs to finance its spending. It doesn't. It just spends money into existence. Treasuries are a political constraint, not a technical one.

   Please read about Modern Money Theory.

   https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-... https://www.youtube.com/watch?v=TDL4c8fMODk

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4. doolsJan 2016
   No, the position that I'm taking that taxation drives demand for currency is a core tenet of Modern Monetary Theory which is starkly in opposition to Monetarism on almost all issues[1][2].

   Monetarism is the basis of the neoliberal agenda which enjoys near perfect adoption all over the world. It is the mainstream. Austrian economics is mainstream amongst "conservatives" and MMT is on the fringe of everything because it sounds too conservative to be progressive and too progressive to be conservative (and yet contains the most complete description of how currency works out of any of them!)

   [1] http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov... [2] https://www.youtube.com/watch?v=0zEbo8PIPSc

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5. doolsDec 2015
   Indeed! And once you're through with that check out Modern Money Theory by Randall Wray which puts the whole shitfight into a solid economical context!
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6. doolsNov 2015
   Everyone has to consume. Consumption is a necessity, and is unavoidable (and therefore unevadable). Some level of taxation is required since it determines the level to which government can spend without devaluing the currency, and it's also a tool that can be used to drain money out of the economy. But it's not required to "fund" anything -- what you want out of a tax is one that allows you to apply policy effectively. Putting tax legislation in place and enforcing it are two very different beasts. Having a consumption tax with sufficient offsets for low income earners is far less likely to result in evasion because everyone must consume, and no-one will refuse being GIVEN money (income tax is sort of the opposite: we don't tax consumption, but we tax income and try to tax high income earners more, which they do their best to evade; low income earners would never "evade" their transfer payments).

   Prices and spending habits will adjust accordingly -- you're giving people a huge tax break in one area and adding a burden in another. There wouldn't be any impact on aggregate demand, but fiscal policy would be much easier to implement.

   Video on how this works: https://www.youtube.com/watch?v=i35uBVeNp6c

   Book on how this works: http://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sov...

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