This is a blog that will explain how the modern monetary “fiat” system works. We will endeavour to explain the mechanics of modern money. This will not be based on theory but fact. Make no mistake about it that this is an economics blog.
Whilst we will attempt to keep it simple for the average non-economist, a basic understanding of early high school algebra will be necessary.
This school of thought is known by many names, Modern Monetary Theory (MMT), Chartalism/Neochartalism, Modern Monetary Dynamics or as we have called it Modern Money Mechanics. These are all essentially the same thing. It is considered a post-Keynesian school of thought.
Once modern monetary theory is understood, the ramifications of the system can be explored. For example, many MMT proponents take the view that the national government which issues the currency as a monopolist has a charter to advance public purpose (welfare) at all times even if, in doing this, specific private interests are impeded. In general, the advancement of public interest will provide a sound basis for private benefit also. But at times this will not be the case. (Bill Mitchell)
Some of our blog posts will be our own work but most will be adaptation of others work on MMT. Comments will be restricted on some of these posts (not all) and you will be directed to a link to the source document when a commenting facility is available.
We are in no way associated with the Modern Money Mechanics workbook released by Federal Reserve Bank of Chicago.