(1/7) Our high-level understanding of #MMT
"It frames the broader discussion on fiscal and monetary expenditure because it outlines an unconstrained model of spending for a country which has sovereignty over its own currency (which is a central pillar of MMT)."
"It frames the broader discussion on fiscal and monetary expenditure because it outlines an unconstrained model of spending for a country which has sovereignty over its own currency (which is a central pillar of MMT)."
(2/7)"Modern Monetary Theory focuses primarily on the efforts of the fiscal authority (government), whilst the role of the monetary authority (central banks) is to facilitate these efforts. Again, government is elevated to the top of the economic hierarchy."
(3/7)A country who has sovereignty over its own currency:
1) Issues its own currency
2) can’t have debts in its own currency if it issues its own currency
1) Issues its own currency
2) can’t have debts in its own currency if it issues its own currency
(4/7)"The government is the issuer of the currency. The corporate and household sectors are the users of that currency. This distinction between an issuer and a user of a currency is central to MMT."
(5/7)"A country with sovereignty over its currency can issue as much currency as it chooses, whilst a household or company is only using that currency."
(6/7)MMT argues that current economic thinking has got it “the wrong way around” and will fail to realize the true potential of an economy. It argues that:
1) Debts are not debts
2) Spending comes before Taxing
1) Debts are not debts
2) Spending comes before Taxing
(7/7) Go get the full article here: thelykeion.com/who-picks-up-t…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
