25min chapter

Funny Money cover image

The MMT Lens with Special Guest Stephanie Kelton

Funny Money

CHAPTER

Understanding Modern Monetary Theory (MMT)

This chapter explores the concept of Modern Monetary Theory (MMT) and its accurate description of the monetary system, using examples like the CARES Act to illustrate how Congress commits to spending and the Federal Reserve carries out payments. It discusses the inversion of the traditional understanding of taxation in MMT, where spending comes before taxation and explores the purposes of taxation in fiscal policy and public budgets.

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