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RE: MODERN MONETARY THEORY - can anyone explain major differences between MMT and current monetary system?

in Project HOPE • 5 years ago

Hi @culgin

Thanks buddy for always being so responsive and helpful with your comments.

The key difference between the current system we have is that it believes that countries with a fiat currency system can and should print as much money as they need to spend since they will never go broke.

That part I already managed to understand. However Im not sure how does MMT plan to combat extreme inflations caused by constant drop of value of printent FIAT currency.

Yours, Piotr

5 years ago in Project HOPE by
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     5 years ago 

    The fact is nobody can be certain that the system can prevent high/hyper inflation. The most compelling argument I read so far is that the government will be able to regulate the inflation level through efficient allocation of money and taxations

    MMT really relies on an efficient government, which so far I haven't really seen one. The government here in Singapore is probably among the most efficient, but I am not confident MMT will work even under the Singaporean government

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