Rethinking Modern Monetary Theory

This chapter examines the core principles of Modern Monetary Theory (MMT), arguing for a shift in focus from budget deficits and national debt to the management of inflation as the primary concern of fiscal policy. It highlights the necessity of understanding real resource constraints and the societal benefits of government spending, particularly in areas like healthcare and education. The discussion also critiques common misconceptions about government financing, emphasizing that taxes primarily function to regulate the economy rather than to fund expenditures.