What is Modern Monetary Theory?

Modern Monetary Theory is, in one sense, just reality. In the other and more important discussion MMT is a simple ignorance of the original question being asked.

Modern Theory

The modern part of the theory comes from the fact that we’ve really only had fiat currencies these last few decades. Before the mid 1970s at least some sort of lip service was paid to the idea that the value of a currency was backed up by something or other.…

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To Get The Very Basics Of Modern Monetary Theory Wrong

Modern Monetary Theory is an oddity. In one sense it’s simply a statement of the blindingly obvious – governments create modern money so they can’t run out of it. As long as they can afford the paper and the ink – something Zimbabwe famously proved it is possible for a government to fail at, their last run of hundred trillion $Zim notes wasn’t worth enough to buy the ink for the next – then they can always print more.…

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Zimbabwe’s Real Riots Problem – Modern Monetary Theory Strikes Again

That Zimbabwe hasn’t been well ruled since, oooh, 1965 is both obvious and well known. But it’s the quite how the ruling has been bad that interests here, not just the general driving of a once richer nation into the current penury.

The current riots are, on the face of it, about the imposed rise in fuel prices. But that’s not quite it – what it’s really, at heart, about is the application of modern monetary theory to the economy in Zimbabwe.…

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The Problem With Modern Monetary Theory – Explained For Children So MMT Enthusiasts Can Understand

This is a rather good explainer for children about what happens if a country decides it can get richer just by printing a lot more money. Which is, at heart, that modern monetary theory contention, that we can just print lots more money and go buy all the stuff we want. Which isn’t quite how it works out of course. So, the explanation for children, possibly one that’s simple enough for even MMT enthusiasts to grasp it.…

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