Taxation and the Monetary System: An MMT Perspective

This chapter examines the interplay between taxation and the UK's monetary system through Modern Monetary Theory, emphasizing how taxes influence money supply rather than fund government projects. It critiques traditional views on government debt, advocating for a reevaluation of economic policies that recognize the role of central banks and government bonds. The discussion also explores potential alternatives like term deposits to mitigate speculation in the financial sector and address misconceptions about government debt.