MMT Is Misunderstood | Warren Mosler

MMT Is Misunderstood | Warren Mosler
MMT stands for Modern Monetary Theory, an economic framework stating that governments with sovereign currencies are not constrained by revenue in their ability to finance spending, but rather by inflationary pressures and real resources. It suggests that a currency-issuing government can spend to achieve full employment without necessarily needing to tax or borrow first, as it can create money to cover its obligations, with the main constraint being potential inflation if spending exceeds the economy’s productive capacity.

Credit to : Money & Macro Talks