Here is a simple explanation for What MMT is and what it isn’t .

Shouldn’t be be studying this ?

I love the simple explanation for why Germany after WW1 and Zimbabwe ( with its Zimbwillions) experienced HYPERINFLATION but we will NOT…In Those two cases the countries had NO capacity to produce enough
goods and services to meet demand from the flood of money being printed.

This is NOT the case in the Western World…if there is one thing we can do it is “Produce” very efficiently ! Ergo ..we will NOT experience Hyperinflation. Maybe Goldbugs can now relax on this point !

“The government need not balance its books the way a household does. Governments create and spend money but they do not tax back 100% of that cash. That’s why, at any given time, a government will be running a deficit. The deficit is merely the difference between all the cash the government has spent and all the taxes it has collected. A deficit signifies that the private sector — you and me — is holding the difference. So if the government is in deficit the flipside is that the private sector is in surplus. Similarly, if the government is in surplus it must mean that the private folks are in deficit — using debt or their savings to get by, because total payments to the government are more than the government’s spending.

From this perspective, deficits aren’t the problem they are the Solution ”

…..Well how do you do ! …

“The alternative is squeezing the economy in order to balance the government’s books. And that makes no sense if the government has the ability to create new cash and wipe away its deficits anytime it wants, without raising taxes. ”

……Well Holey Molars !…..

“In 2018, Goldman Sachs analyst Jan Hatzius and his team published a short paper on US debt, as compared to Japanese debt. “Japan’s experience raises an obvious question: Why should we care about US deficits if Japan has sustained a vastly higher debt-to-GDP ratio without experiencing a sovereign debt crisis? After all, US debt levels look modest by comparison: general government gross debt is 108% of GDP in the US versus 236% in Japan, while net debt is 81% of GDP in the US versus 153% in Japan,” the team asked.

They then gave an answer that pleased MMT advocates greatly:

“A sovereign debt crisis is difficult to imagine in a country that issues debt in its own currency, has a flexible exchange rate, and controls its central bank, as Paul de Grauwe has argued, and Japan’s experience supports this view.”