Modern Monetary Theory

MMT, an abbreviation of Modern Monetary Theory, and previously known as Mosler Economics, is a Chartalist economic school spearheaded by hedge fund manager and perennial independent political candidate Warren Mosler. This economic school argues that in modern, developed countries, taxes are the ultimate source of unemployment, and that unemployment can therefore be eliminated through decreasing taxes or increasing spending directed toward job growth. According to MMT, the control and available of real resources are the main determinants of inflation from government deficits. MMT argues that governments who are the sole issuer of their currency cannot default on that currency. MMT also argues that market economy participation in modern economies is a result of a violent imposition of taxation, and that without a violent threat of taxation, the value of the government's currency would go to 0.

Paul Krugman, a highly publicized Keynesian economist argues that MMT is not substantially different from Keynesian and therefore mainstream economic theory. MMT proponents argue that MMT has differing views from Keynesian and modern economics. MMT argues that mainstream economics ignores that the US government and similar governments determine inflation through price setting. Second, MMT states that the aforementioned federal governments never spend taxpayer revenue and always dispose of it, which they argue is different than mainstream theory. MMT also argues that mainstream economics overemphasizes the role of the federal reserve in it's ability to stimulate the economy in a non-inflationary manner.