[ed. This was part Randy’s Talk at ICAPE.]
By L. Randall Wray
First I’ll clearly state what MMT is and then outline four paths that lead to MMT’s conclusions: history, logic, theory and practice.
What is MMT? It provides an analysis of fiscal and monetary policy that is applicable to national governments with sovereign currencies.
There are four requirements that identify a sovereign currency: the national government
a) chooses a money of account;
b) imposes obligations (taxes, fees, fines, tribute, tithes) in the money of account;
c) issues a currency denominated in the money of account, and accepts hat currency in payment; and
d) if the National government issues other obligations, these are also payable in the national government’s own currency.
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