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If the state money printing was at a reasonable level, and invested into public infrastructure, and education then in theory money printing wouldn't be a problem.

Unfortunately, in practice excess money is printed to fund wars, and social programs which causes potentially dangerous levels of inflation.

That's the main caveat / tradeoff that MMT advocates don't usually address.

The Debt has to be below 80% of GDP, interest rates have to be about 1% to 2% , & there has to be at least a small surplus or deficit.

Breaking these general rules causes issues, and could cause inflation to spiral out of control.

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Discussion

Edmond Dantes⚡ 8mo ago

Your economic overlords tell you money printing of 2% is a "reasonable level". They then average 3 or 4 times that. When it comes to counterfeiting, there simply is no reasonable level.

Jordan S 8mo ago

They do that because there's two aspects Fiscal Policy, and Monetary Policy.

Unfortunately Congress has continued to make a deficit, and spend this country into excess inflation.

That's why The Fed has to set interest rates higher to offset, and cool down that inflation caused by Congressional Spending.

Edmond Dantes⚡ 8mo ago

Without counterfeit central banking, the gobbmint would have to raise taxes or cut spending. Inflation amounts to a silent time theft and tax. It is evil - justified via inane arguments and brainwashing. No coincidence the income tax and Fed were enacted the same year. Central banking, one of the 10 tenets of Marxism, needs to be abolished.