Modern Monetary Theory (MMT)

Modern Monetary Theory (MMT) is an economic approach that suggests countries that control their own currency can never run out of money in the same way businesses or individuals can. It argues that governments can and should use monetary policy to ensure full employment and support public services, as they can create money to finance their spending. MMT emphasizes that inflation, not budget deficits, is the primary limit on government spending. In essence, it shifts the focus from balancing budgets to focusing on economic health and resource utilization.