Modern Monetary Theory Explained (I): a simple MMT world
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Photo credit: Philip Taylor PT via Foter.com / CC BY Modern Monetary Theory (MMT) is a theory of money. Specifically, it is a theory of fiat money. There are other kinds of money: commodity money or representative money, credit or debt money. Each has its own rules and behavior. Fiat money is different than the others. It is based on declaring: “This here thing is money and you can pay your taxes with this money, and ONLY with this money. You can use it for other things if you want, but you if you get a tax bill, THIS is what you need in order to pay it. Period..”
Modern Monetary Theory Explained (I): a simple MMT world
Modern Monetary Theory Explained (I): a…
Modern Monetary Theory Explained (I): a simple MMT world
Photo credit: Philip Taylor PT via Foter.com / CC BY Modern Monetary Theory (MMT) is a theory of money. Specifically, it is a theory of fiat money. There are other kinds of money: commodity money or representative money, credit or debt money. Each has its own rules and behavior. Fiat money is different than the others. It is based on declaring: “This here thing is money and you can pay your taxes with this money, and ONLY with this money. You can use it for other things if you want, but you if you get a tax bill, THIS is what you need in order to pay it. Period..”