Modern Monetary Theory

Tax In Modern Monetary Theory: An Explanation

"Historically modern monetary theory placed too little emphasis on the role of tax in the economy. It's my belief, explained here and here that tax and modern monetary theory are intimately linked issues. That's not because tax pays for government spending: it does not. But tax is fundamental to fiscal policy in a modern monetary theory environment. And without the funding constraint that has limited tax design to date, MMT liberates tax to be an instrument for social change as well.

We Cannot Run Out Of Money But We Will Run Out Of Jobs

"when it comes to government-created money, the Bank of England can literally create however much the government instructs, simply by entering numbers into the computer that records the transactions between the Treasury and the Bank. This can be done as often as required so long as if the control of inflation requires it enough tax is charged to take that newly created money out of circulation, and so destroy it."