- This may cause hyperinflation.
- This really isn’t all that not the same as regular economics.
The very first effect moves from MMT’s rhetoric concerning the federal government constantly to be able to print more income. The image of the federal government producing unlimited heaps of money to invest in whatever it would like to spend brings to mind Weimar-era wheelbarrows of money, as Larry Summers penned inside the review of MMT:
It isn’t true that governments can easily produce brand new cash to cover all liabilities coming due and avoid default. This approach leads to hyperinflation as the experience of any number of emerging markets demonstrates, past a certain point. (more…)