It’s a nominally liberal smokescreen to explain why the US can do whatever it wants with the dollar without discussing imperialism or the US’ chokehold on global financial institutions.
MMT only works when applied to USD based on the extraordinary privilege of being the hegemonic global reserve currency. Any other country will inevitably encounter inflation issues, primarily due to currency devaluation on foreign exchange markets. In fact all instances of hyperinflation have been due to excessive money creation, albeit under extenuating circumstances, typically oppressive foreign debt.
With the accelerating trend of dedollarization, the USD will soon behave like all other currencies, beholden to a nation’s balance of payments.
I have to partially disagree that proponents of MMT don’t talk about imperialism. I mean, yes, a lot don’t. But Marxists or Marxist-adjacent folks like Michael Hudson or Steve Grumbine talk about it all the time.
It’s a nominally liberal smokescreen to explain why the US can do whatever it wants with the dollar without discussing imperialism or the US’ chokehold on global financial institutions.
MMT only works when applied to USD based on the extraordinary privilege of being the hegemonic global reserve currency. Any other country will inevitably encounter inflation issues, primarily due to currency devaluation on foreign exchange markets. In fact all instances of hyperinflation have been due to excessive money creation, albeit under extenuating circumstances, typically oppressive foreign debt.
With the accelerating trend of dedollarization, the USD will soon behave like all other currencies, beholden to a nation’s balance of payments.
I have to partially disagree that proponents of MMT don’t talk about imperialism. I mean, yes, a lot don’t. But Marxists or Marxist-adjacent folks like Michael Hudson or Steve Grumbine talk about it all the time.
Depending on how broadly one defines imperialism, MMT thinkers talk about it all the time when they discuss monetary sovereignty.