PoMo endorses MMT

I have long been critical of Positive Money (PoMo)’s ideas on money (although I am a regular Positive Money member).

At last! they seem in favour of ‘Direct Monetary Financing’ (DMF). This, it seems to me, is basic so-called ‘Modern Monetary Theory’ (MMT): a sovereign government alone issues its own money so, if anyone wishes to use it to pay taxes, or be protected by the issuer’s rule of law, nobody can ‘threaten’ not to buy it – at any interest rate at all:

It looks to me as though PoMo is finally fully embracing MMT and I’m fine with calling it, in current times and in shorthand DMF….


  1. Pingback: We need direct monetary funding of government spending
  2. Ian Stevenson -

    The power of an idea whose time has come. Victor Hugo.

    Could it be so, Peter?

  3. Peter May -

    I certainly hope so!

  4. Steve Porter -

    Actually PoMo (Ben Dyson in particular) has advocated direct monetary funding since PoMo was founded around ten years ago. They have of course advocated it as part of the full reserve banking / Sovereign Money system they advocate. But those two, FR/SM and DMF are actually separate ideas: you can have the latter without the former.

    1. Peter May -

      Agreed. I will blog tomorrow about why I think PoMo have actually moved on…

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