INTEGRAL WORLD MAILING LIST
 
http://www.integralworld.net
Newsletter Nr. 1.107
Amsterdam, August 22, 2023


FATAL FLAWS IN JOE CORBETT'S DEFENSE OF MMT - JAN KRIKKE

In a recent contribution to Integral World, my good friend Joe Corbet argued that the US national debt of $32 trillion is inconsequential and that Modern Monetary Theory (MMT) backs up this view. Corbett's basic argument is that a government issuing its own currency (by fiat) can never go bankrupt. It can always print additional money to cover its debt/expenditures.

If this theory is taken to an extreme, we could argue that the US government can print enough dollars to make every US citizen a millionaire. Needless to say, it can't, and the reason it can't is the blind spot of MMT. A case can be made that MMT has been used as a fig leaf for monetary malpractice.

Read more:
https://www.integralworld.net/krikke3.html