> It’s a textbook outcome from easily identifiable policy choices.
There's no wide agreement that either MMT or Fiat currency is that predictable.
The case for MMT and "printing money" (right or wrong) is made in popular books such as Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy
I’m actually persuaded that MMT is basically correct. But MMT doesn’t say that money printing doesn’t cause inflation. It says that it won’t cause inflation if there’s slack in the economy, or money is taken out of the economy through higher taxes. The key point of MMT, as I understand it, is that central government budgets don’t need to balance for the sake of it. But taxation is the primary lever for controlling inflation.
What we’re seeing is what MMT would predict. We had essentially full employment in February 2020. Then we more than doubled the money supply, and didn’t raise taxes. We would expect to see massive inflation even under MMT.
We are all de facto MMT believers now, insofar as nobody is willing and able to balance the budget. That shows the policy failure of this administration. MMT would say that we need to raise taxes to take money out of the economy. We especially need to raise taxes on the upper middle class, who are responsible for the lion’s share of consumer spending. But Biden has stuck to this ridiculous $400,000 floor for raising taxes.
I'm not in or from the US so that's a strong "What do you mean 'we', Ke-mo sah-bee?"
> But Biden has stuck to
My impression of the US system is there's an excess of players able to throw sticks in bicycle wheels and unbalance most plans and Biden (regardless of his age, cognitive slips, and US left or right party affiliation) appears to be one of the rare few who can manage to steer some bicycles through the chaos ..
I don't know enough of the gory details you have going on there, my first thought would be that he's not aiming higher as his political gut might be telling him it would never get anywhere if it did.
There's no wide agreement that either MMT or Fiat currency is that predictable.
The case for MMT and "printing money" (right or wrong) is made in popular books such as Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy
https://www.amazon.com/Deficit-Myth-Monetary-Peoples-Economy...
and explored in documentaries such as Finding the Money (https://www.imdb.com/title/tt27513787/) and PIIGS (https://en.wikipedia.org/wiki/Piigs)
These may or may not convince you, but they might assist in understanding the opposing viewpoint.