Forgive me for not following fully. My understanding of MMT’s point of view is the following:

There’s no reason why the central bank can’t coordinate with the treasury to create enough new money to fund necessary obligations. Then the treasury can tax away excess money in circulation, to the point where the money supply is aligned with output capacity, in order to control inflation.

Why is that wrong?

2018 winner of the Dalton Camp Award for essay-writing. M.A. Political Science. I'll go to the mat for the Oxford comma.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store