Modern Monetary Theory and State Finances: A Recipe for Progress?
The central idea of MMT is that countries that issue their own currency are not financially constrained. This is because a government in control of its currency can simply ‘print’ new money to finance its spending. In today’s world, printing money does not mean opening up the printing presses, but rather is about creating money electronically at the click of a mouse. In its purest form, the central bank simply credits or increases the bank account of the government, which is then free to spend.