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2) the UK has a Fiat currency. So does the US, Australia, Japan, and many others. This means their currencies r not pegged to gold or any other currency or commodity.
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4) in all these nations, commercial banks also create money through credit. But this is not the same as “currency”, which is a net asset to us.
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7) this means there’s no need to “balance the budget” ever.
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9) the Eurozone as a whole is monetarily sovereign. BUT each member state within it is not. However, member states are made responsible for fiscal policy within their nations. This doesn’t work well
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10) MMT is simply description of how these currencies work. MMTers tend to support certain policies, like a job guarantee, But these are part of a separate prescriptive aspect of MMT. >
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- that MMTers want to print money and turn countries into Zimbabwe.
- that MMT only works in closed economies.
- that central banks are private entities not under control of govt (not true).
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- that investors wouldn’t like it.
All these issues have been debunked over and over again in many papers.
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13) MMT makes right wingers nervous bc it gives hope to many who were until now told that “there is no alternative”
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14) Despite this, #MMT isn’t inherently LW or RW. But if ppl knew MMT, RW politicians would no longer be able to hide their ideology behind the lie that money is scarce. It’s not.