A good follow-up video (Public Board)
Why is modern monetary theory so important?
The author of the video says:
"MMT fundamentally reframes the power relationships within our economy, moving power away from banking and the City and towards democratic government control whilst prioritising people and full employment instead. No wonder so many people don’t like it: MMT challenges all the privileges they enjoy at cost to the rest of us."
"Tax is used to control inflation, not interest rates."
These two things change the balance of power.
The balance of power now lies with the treasury, and its decisions over taxation.
The central bank is reduced to just a regulator of the banks, and not a controller of the whole of economic policy, which was the status given to it for the previous 25 years – wholly mistakenly.
It's about taxing bad things and subsidizing good things.
MMT fundamentally changes ... how the economy works.
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