MMT and taxation
In this short blog essay I will present my perspective on Modern Monetary Theory (further referred to as MMT) - a new clever macroeconomic theory and why I belive it to be equivalent to raising taxes. What is MMT? Modern Monetary Theory is a macroeconomic theory that asserts that countries with monetary sovereignity (countries with full control over their currency and whose currency is held and desired by other central banks and which does not hold large foreign currency debts) like the US, Canada, UK, Japan and China, but not the EU (as member states with fiscal sovereignity do not have monetary sovereignity) and not countries like Pakistan, Chile or Argentina (whose currencies are not generally sought after by other central banks and their own citizens), are not constrained by tax revenues when it comes to government spending. ...