Daily Archives: 09/12/2012

What is Modern Monetary Theory?

Modern Money = Endogenous Money + State Money + Credit Money + Functional Finance

MMT is a description of of how monetary mechanics actually work or modern monetary plumbing as one actuary described it.

MMT is a “theory” not because it is “hypothetical”. It is because it draws causal implications from generalized data constructed as model that is explanatory and predictive. That is what “scientific theory” means in philosophy of science.

Tom Hickey