{"id":69287,"date":"2023-04-18T07:20:53","date_gmt":"2023-04-18T06:20:53","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=69287"},"modified":"2023-04-20T15:02:53","modified_gmt":"2023-04-20T14:02:53","slug":"modern-monetary-theory-an-explanation","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2023\/04\/18\/modern-monetary-theory-an-explanation\/","title":{"rendered":"Modern monetary theory: an explanation"},"content":{"rendered":"

As if to mark the new name of this blog I have published what I think is quite an important new pape<\/a>r this morning. This seeks to explain modern monetary theory (MMT) as I understand it.<\/p>\n

\"\"<\/p>\n

I did, of course, publish a glossary entry on MMT<\/a> yesterday. This paper seeks to explore the issue in a lot more depth because it deserves it.<\/p>\n

I admit you are going to need to put an hour aside to read this. There is quite a lot in the paper. What it does do is explain how I understand that the economy works, and how money works within it.<\/p>\n

Doing so, I miss out a great deal of the rather odd arguments that some within the MMT community use to justify how MMT. That is for three reasons.<\/p>\n

First, as will become apparent in another blog that I will publish this week, I do not agree with a great deal that some of the founders of MMT say about it. That is because what they say is either unnecessary, wrong or only consistent with far-right political viewpoints, in my opinion.<\/p>\n

Second, it is because I very clearly differentiate what MMT says from what flows from an understanding of it. \u00a0Far too many people confuse these two, and that is inappropriate.<\/p>\n

Third, this is because justifying something as straightforward as MMT does not require a lot of nonsense to be said: it is really quite straightforward. The supposed theory that some use to justify MMT is not required to understand it, let alone explain its implications.<\/p>\n

I think this paper is pretty fundamental to what this blog is all about. I expect to return to it, and some of its themes, over the coming weeks. For now, it\u2019s available to read here<\/a>. Comments are, of course, welcome.<\/p>\n

\n

For the curious, the photo is of the Farne Islands from Seahouses in Northumberland. MMT is about more than blue-sky thinking. It is about steering the economy off the rocks. You might spot the Inner Farne lighthouse in the photo.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

As if to mark the new name of this blog I have published what I think is quite an important new paper this morning. This
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