The theory is called Modern Monetary Theory (MMT)
We may be on the cusp of a revolution. What if everything we thought we knew about public finance over the past 40 years has been wrong?
/cusp: a point of transition (as from one historical period to the next) : TURNING POINT/
It is challenging the neoliberal economic orthodoxy that has dominated policymaking in Australia, the United States, the United Kingdom and many other countries since the mid-1970s.
They say the argument (promoted famously by British prime minister Margaret Thatcher) that national governments must tax or borrow before they can spend is wrong.
What's so special about fiat currencies?
MMT's theorists say world leaders still haven't come to terms with the demise of the Bretton Woods monetary system in 1971.
In a speech in 1997, then-US federal reserve chairman Alan Greenspan said central banks in the modern era could issue currency without limit.
https://www.abc.net.au/news/2020-07-17/what-is-modern-monetary-theory/12455806
/cusp: a point of transition (as from one historical period to the next) : TURNING POINT/
It is challenging the neoliberal economic orthodoxy that has dominated policymaking in Australia, the United States, the United Kingdom and many other countries since the mid-1970s.
They say the argument (promoted famously by British prime minister Margaret Thatcher) that national governments must tax or borrow before they can spend is wrong.
What's so special about fiat currencies?
MMT's theorists say world leaders still haven't come to terms with the demise of the Bretton Woods monetary system in 1971.
In a speech in 1997, then-US federal reserve chairman Alan Greenspan said central banks in the modern era could issue currency without limit.
https://www.abc.net.au/news/2020-07-17/what-is-modern-monetary-theory/12455806
The Deficit Myth:
Modern Monetary Theory and How to Build a Better Economy by Stephanie Kelton
Modern Monetary Theory and How to Build a Better Economy by Stephanie Kelton
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