Daily Archives: November 11, 2018

FUTURE DOLLARS

By J.D. ALT

In recent essays Iā€™ve made reference to a new framing of what is actually happening when the U.S. treasury issues a bond. It seems to me, this new framing goes to the heart of MMT and might well hold the key to a practical implementation of MMT principles in real world applications. The framing is this:

A U.S. treasury bond is a certificate of issuance of future dollars.

I will expand on this in a moment, but first it is important to say what this framing says a treasury bond is NOT:

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