I’m influenced by some objections to my Positive Money (PoMo) accepts Modern Monetary Theory (MMT) article.
Yes, sure, PoMo always accepted that money could be created, but it was supposed to be by a beefed-up, or entirely separate, Bank of England Monetary Policy Committee. That is not Direct Monetary Funding or Financing – that is giving an unelected committee of bankers or/and economists the power to create money rather than the government itself. What they are now proposing is that the government itself should have that power (as, of course it has, in effect, had ever since the gold standard was abandoned.)
Thank goodness – and that is basic Modern Monetary Theory writ large.
Now it is true that the balancing tax to prevent undue inflation (although currently that danger is non-existant) is absent. But strictly that has no place in either conventional MMT or PoMo’s Sovereign Money.
But let us be thankful that we can all now agree that the government creates money and doesn’t have to borrow it or worry about its own supposed indebtedness.
One man’s debt is after all another man’s investment.
Just look at the specious difference between the Debt Management Office and the the National Savings and Investments bank.
Are we really saying we want one but not the other?
I suggest that my amendments (in red) to their headings indicate that they are, in fact, one and the same thing.
It is simply a matter of marketing.
And marketing, of all things, should never prevent us from dealing with a highly infectious and life threatening sickness epidemic….