Introduction

Modern monetary theory is a contentious macroeconomic idea. It explains how money works in a modern economy. And then by extension how cash and fiscal spending can be used to benefit the greater good of society. Some people go so far as to say that the proper utilization of modern monetary theory will mean that economic slowdowns or recessions like the one we are probably going into at the moment can be all but eliminated. A very long time ago, banks would really only be able to lend out what they actually had. This kind of banking was extremely limited and was really only reserved for governments and nobility. We just don't have the same limitations today.