Modern Monetary Theory

Modern Monetary Theory (MMT) is an economic framework that argues a government that issues its own currency can never run out of money in the same way individuals or businesses can. It allows for increased government spending to boost the economy, especially during downturns, as long as there are unused resources available (like unemployment). MMT suggests that inflation is the main limit to this spending, emphasizing the need for balancing resource use rather than worrying excessively about budget deficits. Essentially, it promotes a focus on achieving full employment and controlling inflation rather than strict fiscal constraints.