@richyphillips “Printing money,” as a criticism, as an assumption that it’s a bad thing, is a holdover from the gold standard. If all unit (pounds, dollars etc.) could be redeemed for gold, than if the supply of those units exceeded the worth of the available gold, than the unit is 1/
@richyphillips worth less. This is the concept people are using when they dismiss MMT as “printing money.”
Of course, the sovereign gov’ts haven’t been on the gold standard for many decades now. But to allow an economy to grow, you still have to create money i.e. you can’t have a larger 2/
Of course, the sovereign gov’ts haven’t been on the gold standard for many decades now. But to allow an economy to grow, you still have to create money i.e. you can’t have a larger 2/
@richyphillips economy w/o more money in it. Fiat money is what provides that now, as chartalism and MMT describe. The phrase “printing money” is an anachronism, used by people who can’t/don’t want to understand fiat money.
Of course there is still literal 3/
en.m.wikipedia.org/wiki/Fiat_money
Of course there is still literal 3/
en.m.wikipedia.org/wiki/Fiat_money
@richyphillips printing of money—and minting of coin—but that is truly a different subject than money creation in the 21st century. /4
@richyphillips @threadreaderapp unroll please
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