,,ii  #aah? ,,congress  #a/ ,session    
,s4 ,,res4 #hi  ,,9 ,,! ,,s5ate ,,( ,,! 
,,unit$ ,,/ates  ,m>* #a1 #bjbc,mr4     
,braun 7= himself1 ,mr4 ,cassidy1 & ,mr4
 ,scott ( ,florida7 submitt$ ! foll[+   
resolution2 :i* 0 ref]r$ to ! ,committee
 on ,bank+1 ,h\s+1 & ,urban ,affairs    
,,resolution  ,recogniz+ ! duty ( !     
,s5ate to ab&on ,mod]n ,monet>y ,!ory & 
recogniz+ t ! acceptance ( ,mod]n       
,monet>y ,!ory w\ld lead to high]       
deficits & high] inflation4  ,:]eas not$
 economi/s f across ! political spectrum
 h w>n$ t ! implem5tation ( ,mod]n      
,monet>y ,!ory 7ref]r$ to 9 ?is preamble
 z ,,mmt7 w\ld pose a cle> dang] to !   
economy ( ! ,unit$ ,/ates2 ,:]eas1 9    
,july #bjai1 ,za* ,moll]1 deputy        
director ( ! economic program at ,?ird  
,way1 wrote 9 a memo ! problems         
associat$ ) ,,mmt1 includ+ t-- 7#a7 ,"u 
an ,,mmt regime1 policymak]s w\ld ne$ to
 respond to inflation by do+ two ( ! mo/
 unpopul> ?+s ev]3 rais+ taxes & cutt+  
sp5d+4 4 4 4 ,we c easily imag9e divid$ 

gov]nm5t's p>alysis to fight inflation3 
,republicans refus+ to raise taxes &    
,democrats refus+ to cut sp5d+42  7#b7  
,,mmt ends our c5tral non-political     
economic manag] & m>kets tru/ ! ,f$]al  
,res]ve &1 z a result1 bus9esses &      
individuals h well-an*or$ inflation     
expectations4 4 4 4 ,to solve ! *all5ges
 high] int]e/ rates create1 includ+ a   
possible int]e/ f9anc+ spiral1 ,,mmt    
g5]ally says t ! ,f$ w be task$ ) keep+ 
int]e/ rates l[ by mak+ ! ,f$]al        
gov]nm5t1 ?r\gh ! ,f$1 ! consi/5t 7if n 
! prim>y7 pur*as] ( bonds4 ,?is is a    
diff]5t mission = ! ,f$ ?an x has n[4 ,!
 ,f$ w\ld no long] be task$ ) int]v5+ to
 keep prices /able because x w\ld be too
 busy buy+ bonds4 ,bond pur*ases by !   
,f$ g5]ally increase inflation4 ,?us1 ! 
,f$ w\ld no long] be an indep5d5t manag]
 ( ! economy42 &  7#c7 ,,mmt de/roys    
=eign confid5ce 9 ,am]ica's f9ances4 4 4
 4 ,hold]s ( ,u4,s4 debt 79 ! =m (      
treasuries7 expect /ability 9 value1 a  
return f _! inve/m5ts1 & ! ability to be

 paid back4 ,,mmt bl[s t up4 ,bondhold]s
 w\ld no long] be assur$ a return on _! 
inve/m5t1 & x w no long] be z desirable 
= our cr$itors to hold ,u4,s4 debt42    
,:]eas1 on ,may #ag1 #bjai1 ,joel       
,griffi?1 a rese>* fell[ at ,! ,h]itage 
,f\ndation1 wrote 9 an article entitl$  
,! ,absurdity ( ,mod]n ,monet>y ,!ory ! 
foll[+3 ,!re is no free lun*4 ,we w pay 
ei!r ?r\gh ! visible burd5 ( direct     
taxation1 ! hidd5 tax ( inflation1 or   
high] borr[+ co/s 7z ! gov]nm5t competes
 ) bus9esses = available capital74 ,su* 
realities might n make = a great /ump   
spee*1 b fac+ !m squ>ely n[ c save u a  
lot ( heada*es d[n ! road42 ,:]eas1 on  
,m>* #be1 #bjai1 ,janet ,yell51 =m]     
,*air ( ! ,bo>d ( ,gov]nors ( ! ,f$]al  
,res]ve ,sy/em1 disagre$ ) ^?           
individuals promot+ ,,mmt :o sugge/ t y 
don't h to worry ab\t int]e/-rate       
paym5ts because ! c5tral bank c buy !   
debt1 /at+3 ,t's a v wrong-m9d$ !ory    
because t's h[ y get hyp]-inflation42   
,:]eas =m] ,secret>y ( ! ,treasury &    

,director ( ! ,national ,economic       
,c\ncil ,lawr5ce ,h4 ,summ]s-- 7#a7 on  
,m>* #e1 #bjai1 wrote 9 an op9ion piece 
9 ! ,wa%+ton ,po/ entitl$ ,! left's     
embrace ( mod]n monet>y !ory is a recipe
 = disa/] t1 contr>y to ! claims ( mod]n
 monet>y !ori/s1 x is n true t gov]nm5ts
 c simply create new money to pay all   
liabilities com+ due & avoid default4 ,z
 ! exp]i5ce ( any numb] ( em]g+ m>kets  
demon/rates1 pa/ a c]ta9 po9t1 ?is      
approa* leads to hyp]9flation42 &  7#b7 
on ,m>* #d1 #bjai1 said t-- 7,a7 ,,mmt  
is fallaci\s at multiple levels2  7,b7  
pa/ a c]ta9 po9t1 ,,mmt leads to        
hyp]9flation2 &  7,c7 a policy ( rely+  
on a c5tral bank to f9ance gov]nm5t     
deficits1 z advocat$ by ,,mmt !ori/s1   
w\ld likely result 9 a collaps+ ex*ange 
rate2  ,:]eas1 on ,febru>y #bf1 #bjai1  
,j]ome ,p[ell1 ,*air ( ! ,bo>d (        
,gov]nors ( ! ,f$]al ,res]ve ,sy/em1    
/at$3 ,! idea t deficits don't matt] =  
c\ntries t c borr[ 9 _! own curr5cy ,i  
?9k is j wrong42 ,:]eas1 on ,febru>y    

#bd1 #bjai1 ,matt ,bru5ig1 f\nd] ( !    
,p's ,policy ,project1 wrote 9 an       
article entitl$ ,:at's ! ,po9t ( ,mod]n 
,monet>y ,!ory t ! real po9t ( ,,mmt    
seems to be to deploy mislead+ rhetoric 
) ! goal ( deceiv+ p ab\t ! necessity ( 
taxes 9 a social democratic sy/em4 ,if  
successful1 ^! ^w games might loos5 up  
fiscal & monet>y policy a bit 9 ! %ort  
t]m4 ,b ins(> z gett+ gov]nm5t sp5d+    
p]man5tly up to #ej p]c5t ( ,,gdp really
 w require sub/antially m taxes 9 !     
m$ium & long t]m42 ,:]eas1 on ,febru>y  
#ba1 #bjai1 ,d\g ,h5wood1 a j\rnali/ &  
economic analy/1 wrote 9 an article 9   
,jacob9 entitl$ ,mod]n ,monet>y ,!ory   
,isn't ,help+ t ,,mmt's lack ( int]e/ 9 
! relation%ip betwe5 money & ! real     
economy causes adh]5ts to ov]look !     
connection betwe5 tax+1 sp5d+1 & !      
allocation ( res\rces2 ,:]eas1 on       
,janu>y #bh1 #bjai1 9 a "q & answ]      
session ) ,james ,pe?ok\kis (           
,a,e,ideas1 ,/an ,veug]1 visit+ lectur] 
( economics at ,h>v>d ,univ]sity1 /at$  

t1 if y take ,m,m,ters at _! ^w 9 ! mo/ 
aggressive s5se1 !n :at y w\ld see is a 
massive debt f9ance expansion ( ! welf>e
 /ate ) ,m$ic>e = ,all1 ) a jobs        
gu>antee1 & ) conc]ns ab\t inflation be+
 def]r$ entirely to elect$ (ficials :o  
w\ld h to raise taxes to keep x "u      
control4 ,i ?9k 9 a sc5>io l t1 we d run
 a risk ( go+ back to ! #aigjs          
pre-,volk] /yle macroeconomics & ,i ?9k 
t w\ld be bad42 ,:]eas1 on ,janu>y #ag1 
#bjai1 ,mi*ael ,/ra91 ,director (       
,economic ,policy ,/udies at ,,aei1     
wrote 9 an op9ion article 9 ,bloomb]g   
entitl$ ,mod]n ,monet>y ,!ory ,is a     
,joke ,t's ,n ,funny t if y ?\ght f !   
/>t t ! :ole idea s\nd$ l lunacy1 y 7   
"r1 ev5 if x's possible to admit "s     
sliv] ( sympa?y = x2 ,:]eas ,paul       
,krugman1 w9n] ( ! #bjjh ,nobel         
,memorial ,prize 9 ,economic ,sci5ces-- 
7#a7 on ,m>* #a1 #bjai1 po/$ on ,twitt] 
a po9t-by-po9t rebuttal to an article   
entitl$ ,! ,deficit ,my?3 ,mod]n        
,monet>y ,!ory & ! ,bir? ( ! ,p's       

,economy by ,/ephanie ,kelton1 :i*      
conclud$ ) ,krugman tweet+ t-- 7,a7     
,sorry1 b ?is is j a mess4 ,kelton's    
response misrepres5ts /&>d              
macroeconomics1 my own views1 ! effects 
( int]e/ rates1 & ! process ( money     
creation42  7,b7 ,o!rwise ,i guess x's  
all f9e42 &  7,c7 ,see :at ,i mean ab\t 
,calv9ball82 &  7#b7 on ,febru>y #ab1   
#bjai1 wrote 9 an op9ion piece 9 ! ,new 
,york ,times ! foll[+3 ,& debt c't g to 
inf9ity--x c't exce$ total weal?1 & 9   
fact z debt gets ev] high] p w dem&     
ev]-increas+ returns to hold x4 ,s at "s
 po9t ! gov]nm5t w\ld be =c$ to run l>ge
 en\gh prim>y 7non-int]e/7 surpluses to 
limit debt gr[?42 ,:]eas1 on ,novemb]   
#ae1 #bjai1 ,jason ,fi*tn] & ,kody      
,c>mody ( ! ,bip>tisan ,policy ,c5t]    
wrote 9 a report entitl$ ,does !        
,national ,debt ,matt]8 ,a ,look at     
,mod]n ,monet>y ,!ory1 or ,,mmt t-- 7#a7
 deficits d h a role to play 9 public   
f9ance b1 z int]e/ rates rise1 "s       
private-sector projects no long] make   

f9ancial s5se & are =gone4 ,cr[d+ out   
private inve/m5t ultimately leads to a  
misallocation ( res\rces away f _! mo/  
economically productive use1 hamp]+     
economic gr[?4 4 4 4 ,! m we borr[      
today1 ! m exp5sive x w be to cont9ue   
borr[+ 9 ! future4 ,at "s po9t1 debt has
 to be paid back4 ,!re is no free lun*42
  7#b7 ,,mmt und]e/imates o!r d[nside   
risks ( debt & ,,mmt advocates note t   
inflation is ! only re/ra9t on          
debt-f9anc$ sp5d+4 ,?is leads "s to     
conclude t "u ! !ory ( ,,mmt1 debt is n 
a conc]n1 z gov]nm5ts c simply pr9t m   
money to pay (f debt4 ,su* a !ory is    
r\ndly reject$ by academic economi/s on 
bo? sides ( ! political spectrum42  7#c7
 pr9t+ money has co/s1 includ+ a loss ( 
cr$ibility = ! gov]nm5t1 an inflation   
risk1 & exac]bat+ ex*ange rates2  7#d7  
,,mmt assumes away politics & puts !    
onus ( inflation control on ,congress1 !
 in/itution t lately seems wor/-equipp$ 
to h&le x4 ,! ,f$]al ,res]ve--:i* has   
sp5t a long "t build+ ext5sive          

cr$ibility 9 its commitm5t to fight     
inflation--w\ld be l>gely sidel9$42     
7#e7 ev5 ,,mmt admits t deficits & debt 
matt]1 not+ t ,/ephanie ,kelton has     
/at$3 ,i w\ld nev] take ! position t we 
ought to move =w>d1 pass+ legislation ) 
no (fsets1 to d ,gre5 ,new ,deals1 &    
,jobs ,gu>antees1 & ,m$ic>e = ,all4 ,9 !
 end1 ,,mmt's argum5ts l>gely boil d[n  
to a disagreem5t ov] h[ mu* room !re is 
to borr[ )\t accel]at+ inflation42 &    
7#f7 x is h>d to p9 ,,mmt d[n on any?+  
at all due1 9 l>ge "p1 to ! fact t      
prom95t support]s ( ,,mmt h tak5 vague1 
sometimes contradictory positions3 ,:5  
politicians make claims ab\t pay+ = !   
,gre5 ,new ,deal ?r\gh ,,mmt1 /ay sil5t1
 & :5 economi/s criticize ?is view1     
claim y are be+ misund]/ood42 ,:]eas !  
,m>* #bjai report entitl$ ,h[ ,reliable 
is ,mod]n ,monet>y ,!ory z a ,guide to  
,policy8 by ,scott ,sumn] & ,patrick    
,horan ( ! ,m]catus ,c5t] at ,george    
,mason ,univ]sity f\nd t-- 7#a7 ,,mmt-- 
7,a7 has a flaw$ model ( inflation1 :i* 

ov]e/imates ! importance ( economic     
slack2  7,b7 ov]e/imates ! rev5ue t c be
 e>n$ f ! creation ( money2  7,c7       
ov]e/imates ! pot5cy ( fiscal policy1   
:ile und]e/imat+ ! effectiv5ess (       
monet>y policy2  7,d7 ov]e/imates !     
ability ( fiscal au?orities to control  
inflation2 &  7,e7 conta9s too few      
safegu>ds aga9/ ! risks ( excessive     
public debt2 &  7#b7 an ,,mmt ag5da (   
hav+ fiscal au?orities manage monet>y   
policy w\ld run ! risk (-- 7,a7 v high  
debts2  7,b7 v high inflation2 or  7,c7 
v high debts & v high inflation1 ea* (  
:i* may be v h>mful to ! broad] economy2
  ,:]eas ! ,janu>y #bjbj work+ pap]     
entitl$ ,a ,skeptic's ,guide to ,mod]n  
,monet>y ,!ory by ,n4 ,gregory ,mankiw  
/at$3 ,put simply1 ,,mmt conta9s "s     
k]nels ( tru?1 b its mo/ novel policy   
prescriptions d n foll[ cog5tly f its   
premises42 ,:]eas ! ,janu>y #bjai report
 entitl$ ,mod]n ,monet>y ,!ory & ,policy
 by ,/an ,veug] ( ! ,am]ican ,ent]prise 
,in/itute w>n$ t hyp]9flation becomes a 

real risk :5 a gov]nm5t attempts to pay 
= massive sp5d+ by pr9t+ money2 & ,:]eas
 ! ,septemb] #bjah report entitl$ ,on   
,empty ,purses & ,,mmt ,rhetoric by     
,george ,selg9 ( ! ,cato ,in/itute w>n$ 
t-- 7#a7 :5 x comes to ! ability (      
,congress to rely on ! ,treasury to cov]
 exp5ditures1 ,congress is1 9 #a crucial
 respect1 m con/ra9$ ?an an ord9>y      
h\sehold or bus9ess is :5 t h\sehold or 
bus9ess relies on a bank to cov]        
exp5ditures because1 if ,congress is to 
avoid runn+ out ( money1 ,congress _c   
write *ecks 9 am\nts exce$+ ! balances 9
 ! g5]al acc\nt ( ! ,treasury2 &  7#b7  
,,mmt !ori/s succe$ 9 turn+ o!rwise     
banal tru?s ab\t ! work+s ( contempor>y 
monet>y sy/ems into novel policy        
pron\ncem5ts t1 al?\gh tantaliz+1 are   
false3 ,n[1 !re=e1 be x  ,t ! ,s5ate--  
7#a7 realizes t l>ge deficits are       
unsu/a9able1 irresponsible1 & dang]\s2 &
  7#b7 recognizes-- 7,a7 t ! acceptance 
( ,mod]n ,monet>y ,!ory w\ld lead to    
high] deficits & high] inflation2 &     

7,b7 ! duty ( ! ,s5ate to ab&on ,mod]n  
,monet>y ,!ory 9 favor ( ma9/ream fiscal
 & monet>y frameworks4