monetary theory wikipedia - EAS
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Modern Monetary Theory or Modern Money Theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and … See more
MMT's main tenets are that a government that issues its own fiat money:
1. Can pay for goods, services, and financial assets without a need to first collect money in the form of taxes or debt issuance in … See moreIn sovereign financial systems, banks can create money but these "horizontal" transactions do not increase net financial assets because assets are offset by liabilities. According to MMT advocates, "The balance sheet of the government does not include … See more
MMT economists describe any transactions within the private sector as "horizontal" transactions, including the expansion of the See more
Economist Stephanie Kelton explained several points made by MMT in March, 2019:
• Under MMT, fiscal policy (i.e., government taxing and spending … See moreMMT synthesizes ideas from the State Theory of Money of Georg Friedrich Knapp (also known as chartalism) and Credit Theory of Money of Alfred Mitchell-Innes, the functional finance proposals of Abba Lerner, Hyman Minsky's views on the banking system and See more
MMT is based on an account of the "operational realities" of interactions between the government and its central bank, and the commercial banking sector, with proponents like Scott Fullwiler arguing that understanding reserve accounting is critical to … See more
Imports and exports
MMT proponents such as Warren Mosler say that trade deficits are sustainable and beneficial to the standard of living in the short run. Imports are an economic benefit to the importing nation because they provide the nation … See moreWikipedia text under CC-BY-SA license Monetary policy - Wikipedia
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