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How does all of this take into account actual instances of hyperinflation? As in, what would this system do differently than the scenarios that produced hyperinflation? I'm no economist and expert in this topic Also, since currencies float against each other in international exchanges -- does everyone in the world need to embrace MMT for those rates to remain stable?
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Jan 28, 2019 06:19
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Family Values posted:In MMT inflation is controlled by raising taxes, raising interest rates, and reducing discretionary spending. Those are the same tools we use now to control inflation. Hyperinflation is almost always caused by a government holding debt denominated in a foreign currency and then being unable to service that debt when its economy cools. This isn't something that the US needs to worry about because the US borrows in dollar-denominated debt. OK, I guess I'm still confused. Is MMT something that can only be practiced by the US government because it can print dollars? And should governments not issue bonds at all -- just create dollars (or whatever the local currency is) and spend them?
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Jan 28, 2019 19:37
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Babylon Astronaut posted:MMT theorists support a job guarantee to fix much of the system's ills, and the Marxists think it's the most humane way to let capitalism eat itself. I would imagine that Marxists would disagree pretty strongly with the MMT understanding of value and capital, no?
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Jan 31, 2019 04:34
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