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“Modern Monetary Theory” Goes Mainstream
There’s nothing new about “modern monetary theory.” And, actually, a lot of it is true. You can print all the money you like — that is, increase the supply — as long as there is a corresponding increase in demand, and the result will be a currency of stable value. Between 1775 and 1900, the dollar base money supply of the United States increased by an estimated 163 times, but the value (vs. gold) was nearly unchanged. That’s right — a 163-times increase in the quantity of money did not result in any change in the value. But, this was spread over 125 years, a time when the United States experienced ... (full story)