Re:Why inflation is not a threat
by imtringued on Sunday March 14, 2021 @03:52PM
(#26458352)
No, it isn't because he removed all taxation. MMT is also about using money to destroy taxation and eliminate inflation.
In other words, MMT is about understanding the mechanism behind inflation. If you know how inflation works then you have full control over it. You can raise and lower it at will and use this power to actually achieve policy goals.
For example, by injecting money exactly where it causes inflation you can directly cause inflation. It sounds obvious in retrospect and it explains why current central bank policies fail to create inflation.
The money never reaches the hands of people who actually spend it.
Once you reach your policy goals you can stop printing money. Meanwhile if you create money fruitlessly without achieving policy goals you end up creating more money than necessary.
The irony behind MMT is that by printing more money you end up printing less money.
In other words, MMT is about understanding the mechanism behind inflation. If you know how inflation works then you have full control over it. You can raise and lower it at will and use this power to actually achieve policy goals.
For example, by injecting money exactly where it causes inflation you can directly cause inflation. It sounds obvious in retrospect and it explains why current central bank policies fail to create inflation.
The money never reaches the hands of people who actually spend it.
Once you reach your policy goals you can stop printing money. Meanwhile if you create money fruitlessly without achieving policy goals you end up creating more money than necessary.
The irony behind MMT is that by printing more money you end up printing less money.