Modern Monetary Theory

The Modern Monetary Theory (MMT) is a heterodox macroeconomic framework that departs from conventional economic theory. It proposes governments that control their own currency can spend freely, as they can always create more money to pay off their debts in their own currency. The theory suggests government spending can grow the economy to its full capacity, enrich the private sector, eliminate unemployment, and finance major programs such as universal healthcare, free college tuition, and green energy. MMT abandons market‐​based countercyclical monetary and fiscal policies for targeted central control over the allocation of resources.