- This may result in hyperinflation.
- It isn’t all that distinctive from regular economics.
The very first response moves from MMT’s rhetoric in regards to the government constantly to be able to print more cash. The image of a national federal government producing endless heaps of money to invest in whatever it would like to invest brings to mind Weimar-era wheelbarrows of money, as Larry Summers composed in the review of MMT:
It isn’t correct that governments can merely produce new cash to pay for all liabilities coming due and default that is avoid. This approach leads to hyperinflation as the experience of any number of emerging markets demonstrates, past a certain point. Indeed, in growing areas which have practiced contemporary theory that is monetary circumstances could arise where individuals could purchase two products at pubs at the same time to prevent the hourly cost increases. As with every income tax, there is certainly a limitation towards the quantity of income that may be raised via this kind of inflation income tax. Read More