,,iii #aafth ,,congress #ast ,session ,s4 ,,res4 #ahb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #a1 #bjai,mr4 ,perdue 7for himself1 ,mr4 ,braun1 ,ms4 ,ernst1 ,mr4 ,moran1 and ,mr4 ,tillis7 submitted the following resolution2 which was referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,,resolution ,recognizing the duty of the ,senate to condemn ,modern ,monetary ,theory and recognizing that the implementation of ,modern ,monetary ,theory would lead to higher deficits and higher inflation4 ,whereas noted economists from across the political spectrum have warned that the implementation of ,modern ,monetary ,theory 7referred to in this preamble as ,,mmt7 would pose a clear danger to the economy of the ,united ,states2 ,whereas1 on ,march #d1 #bjai1 former ,secretary of the ,treasury ,lawrence ,h4 ,summers said that-- 7#a7 ,,mmt is fallacious at multiple levels2 7#b7 past a certain point1 ,,mmt leads to hyperinflation2 and 7#c7 a policy of relying on a central bank to finance government deficits1 as advocated by ,,mmt theorists1 would likely result in a collapsing exchange rate2 ,whereas1 on ,february #bf1 #bjai1 ,jerome ,powell1 ,chair of the ,board of ,governors of the ,federal ,reserve ,system1 said3 ,the idea that deficits don't matter for countries that can borrow in their own currency ,i think is just wrong2 ,whereas1 on ,march #be1 #bjai1 ,janet ,yellen1 former ,chair of the ,board of ,governors of the ,federal ,reserve ,system1 disagreed with those individuals promoting ,,mmt who suggest that you don't have to worry about interest-rate payments because the central bank can buy the debt1 stating3 ,that's a very wrong-minded theory because that's how you get hyper-inflation2 ,whereas the ,march #bjai report entitled ,how ,reliable is ,modern ,monetary ,theory as a ,guide to ,policy8 by ,scott ,sumner and ,patrick ,horan of the ,mercatus ,center at ,george ,mason ,university found that-- 7#a7 ,,mmt-- 7,a7 has a flawed model of inflation1 which overestimates the importance of economic slack2 7,b7 overestimates the revenue that can be earned from the creation of money2 7,c7 overestimates the potency of fiscal policy1 while underestimating the effectiveness of monetary policy2 7,d7 overestimates the ability of fiscal authorities to control inflation2 and 7,e7 contains too few safeguards against the risks of excessive public debt2 and 7#b7 an ,,mmt agenda of having fiscal authorities manage monetary policy would run the risk of-- 7,a7 very high debts2 7,b7 very high inflation2 or 7,c7 very high debts and very high inflation1 each of which may be very harmful to the broader economy2 ,whereas the ,january #bjai report entitled ,modern ,monetary ,theory and ,policy by ,stan ,veuger of the ,american ,enterprise ,institute warned that hyperinflation becomes a real risk when a government attempts to pay for massive spending by printing money2 and ,whereas the ,september #bjah report entitled ,on ,empty ,purses and ,,mmt ,rhetoric by ,george ,selgin of the ,cato ,institute warned that-- 7#a7 when it comes to the ability of ,congress to rely on the ,treasury to cover expenditures1 ,congress is1 in #a crucial respect1 more constrained than an ordinary household or business is when that household or business relies on a bank to cover expenditures because1 if ,congress is to avoid running out of money1 ,congress cannot write checks in amounts exceeding the balances in the general account of the ,treasury2 and 7#b7 ,,mmt theorists succeed in turning otherwise banal truths about the workings of contemporary monetary systems into novel policy pronouncements that1 although tantalizing1 are false3 ,now1 therefore1 be it ,that the ,senate-- 7#a7 realizes that deficits are unsustainable1 irresponsible1 and dangerous2 and 7#b7 recognizes-- 7,a7 that the implementation of ,modern ,monetary ,theory would lead to higher deficits and higher inflation2 and 7,b7 the duty of the ,senate to condemn ,modern ,monetary ,theory4