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RE: MODERN MONETARY THEORY - can anyone explain major differences between MMT and current monetary system?
I did read up on MMT some time back. The key difference between the current system we have is that it believes that countries with a fiat currency system can and should print as much money as they need to spend since they will never go broke.
In contrast, the current system believes that governments spending should be funded through taxations and issuance of bonds.
Under the MMT, the central bank will no longer need to manage interest rates as it will always be kept a fixed level (e.g. 0%). Overall greater responsibilities will be on the government.
Will be happy to have an open discussion on this topic
Hi @culgin
Thanks buddy for always being so responsive and helpful with your comments.
That part I already managed to understand. However Im not sure how does MMT plan to combat extreme inflations caused by constant drop of value of printent FIAT currency.
Yours, Piotr
The fact is nobody can be certain that the system can prevent high/hyper inflation. The most compelling argument I read so far is that the government will be able to regulate the inflation level through efficient allocation of money and taxations
MMT really relies on an efficient government, which so far I haven't really seen one. The government here in Singapore is probably among the most efficient, but I am not confident MMT will work even under the Singaporean government