Anybody familiar with Modern Monetary Theory?

[DemocratSinceBirth]

It's a school of thought that deficits don't matter and the government can just print money to meet its obligations.

[Poiuyt]

1. I know that Josh Marshall over at Talking Points Memo wrote about it a couple of weeks ago

I haven't really read enough about it to understand it yet. But I trust Josh Marshall.

[DemocratSinceBirth]

3. Did he say if it was wise or unwise?

[Poiuyt]

6. Not sure exactly

He talked about the "slippery slope" of this. I think he was saying that we need to REALLY understand the matter before we jump in feet first

[PETRUS]

2. I've done some reading on the topic.

Your description isn't exactly right, but it's not entirely incorrect either.

Why do you ask?

[DemocratSinceBirth]

4. Because it's popping up in a lot of places.

[PETRUS]

5. I've noticed that, too.

If you're up for a lot of reading, you might start here:

http://neweconomicperspectives.org/modern-monetary-theory-primer.html

I'm not sure how much I have to offer, but I'm willing to try to answer any questions from you about MMT.

[Adrahil]

7. This is ONLY true if...

If debt is held in the sovereign currency.

In other words, as long as the Gubmint can print money and pay debts, despite devalued currency.

Frankly, I'm kinda for a a "reset" as far as debt goes, but I think that much of an increase in the money supply could play havoc with markets. Better do it gradually.

[marylandblue]

8. For political purposes, think of it as a left wing Laffer Curve

Just like the Laffer Curve, regardless of economic merits, was an excuse to cut taxes, MMT can be used as an excuse to increase social spending. If Democrats win big in 2020, MMT will hit the big time. Conservatives will scream INFLATION! VENEZUELA!

Politically, it's great for the left, and that's why you are hearing more about it. I'm not convinced of the economics, but I don't know enough about it yet.

[dogman]

9. The proponents view.

https://www.cnbc.com/video/2019/03/01/stephanie-kelton-explains-modern-monetary-theory.html