Modern Monetary Theory or Modern Money Theory (MMT)
The Modern Monetary Theory is an alternative to the traditional macroeconomic theory. Generally, MMT suggests that there is no limit to the quantity of money that can be created by a central bank. The only limit comes from the impact of inflation. In short, MMT suggests that countries and governments controlling reserve currencies can borrow and spend as much as they need to achieve employment, and later, create more currency to repay their debt.
MMT Economists are focused on fiscal policies
According to MMT, governments can create new money through their fiscal policy. The government’s fiscal policy is focused on budgeting and includes:
Government spending, and