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Everything they told you about money is wrong

taxresearch.org.uk

Modern Monetary Theory flips the script on government finance — arguing that sovereign currency issuers can't "run out" of money the way households can, upending decades of austerity logic.

Modern Monetary TheoryFiscal PolicyKeynesian EconomicsMonetary Sovereignty
Everything they told you about money is wrong

Theory Briefing

  • Modern Monetary Theory argues that governments issuing their own currency face no household-style budget constraint, challenging mainstream economic orthodoxy.
  • MMT reframes inflation — not debt — as the real limit on government spending, inverting the deficit-fear narrative dominating policy debate.
  • The article suggests widely held assumptions about money and fiscal responsibility are not economic laws but political choices dressed as facts.