Modern Monetary Theory

Mythbuster: Modern Monetary Theory

"Modern monetary theory (MMT) describes how money works in the modern economy. There's nothing inherently left-wing about it. And as a matter of fact., every economy that is spending to beat the coronavirus crisis right now is working in the way modern monetary theory describes."

Modern Monetary Theory - A Short Guide

"There is now a great deal of discussion of modern monetary theory going on, precisely because it appears that the UK government (and others around the world) are now behaving in the way that it suggests is, and has always been, possible. What MMT says, as far as I am concerned, is as follows..."

Is World Leading NHS Care Affordable?

"As a sovereign nation, the UK can always afford high quality universal NHS healthcare. Money is essentially an accounting system designed to facilitate our collective activities and development. Fiscal policy needs to be activated to meet the needs of our society as there is now observable failure of the prevailing reliance on monetary policy and preservation of rent-seeking private interests. It is evidently wrong to assert that healthcare access and quality is limited by the availability of money. The constraint, in truth, has never been the potential availability of money, but the desire to resource the NHS appropriately. In the words of John Maynard Keynes, ‘Anything we can actually do we can afford’."

The Government Can Create All the Money We Need

"But there is one bank that can never run out of money. And that is a central bank of a government that has its own sovereign currency, such as the Bank of England in the UK. The Bank of England can always pay. It can never fail. Because as the creator of all money, it can simply mark up its account with the government, and issue some more currency at will whenever it wants. The relationship between the Bank of England and the government is crucial here. The Bank can always lend what the government wants. So there need never be a shortage of money, most especially in situations of the type that now exist."