MMT's Fatal Flaw

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"Free healthcare and higher education, jobs for everyone, living wages and all sorts of other promises are just a few of the benefits that MMT can provide." MMT and its Fictional Discipline

Modern monetary theory (MMT) offers a new "logic" that allows the government to spend without facing the traditional constraints of debts and deficits. Is MMT too good to be true?

On the heels of unprecedented spending and unmanageable deficits, MMT is gaining popularity. Its acceptance is not surprising as its principles justify reckless fiscal behavior. MMT advocates are loud in their support for spending and mock the thought of "too much debt." I often fail to hear them highlight the critical governor in their theory designed to limit inflation.

The current bout of inflation exposes MMT's fatal flaw.