Modern Monetary Theory: An Introduction
Modern Monetary Theory (MMT) is a heterodox macroeconomic framework that argues a government issuing its own currency, such as the United States, is not fiscally constrained in the same way households or businesses are when it comes to federal spending. Currency Users vs Currency Issuers. A core principle of MMT is the fundamental distinction between a currency user and a currency issuer. Currency users include regular people like you and me, who work to earn wages; businesses, which provide goods and services to generate revenue; and state and local governments, which rely on taxation. Most people, unsurprisingly, experience money only from the perspective of a currency user. ...