Modern Monetary Theory

heterodox macroeconomic theory; describes currency as a governmental monopoly and unemployment as evidence that monetary supply is restricted; argues governments should print money to achieve full employment and fund purchases

Modern Monetary Theory or Modern Money Theory (MMT) or Modern Monetary Theory and Practice (MMTP) is a macroeconomic theory and practice that sees the practical uses of fiat currency in a public monopoly from the issuing authority, normally the government's central bank.[1]

MMT says that the government could use fiscal policy to achieve full employment, creating new money to fund government purchases.


  1. Modern Monetary Theory (MMT): A General Introduction. Political Economy - Development: Fiscal & Monetary Policy eJournal. Social Science Research Network (SSRN). Accessed 10 April 2020.