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A comment on Basic Income Research Proposal. Parent comment

Re:Basic Income Research Proposal by rory096 on Thursday September 21, 2017 @01:39PM (#15305747)
It should be noted that the parent is basing his conclusions on Modern Monetary Theory[0], a heretodox economic theory in which fiscal policy is unconstrained, deficits aren't relevant, and a country is always able to spend.

[0] https://en.wikipedia.org/wiki/Modern_Monetary_Theory

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Re:Basic Income Research Proposal by ubi_now on Thursday September 21, 2017 @07:17PM (#15308120)
No, this is way off.

MMT doesn't model fiscal policy as unconstrained in real terms, only nominal terms. And given the legal authority, of course a sovereign issuer is always able to spend. In this case spending is merely typing digits into a computer. This fact doesn't imply deficits/debt "aren't relevant", but rather deficits/debt work very differently for the currency issuer as opposed to the currency user.

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