In the depth of the Great Recession the Fed asked Congress and the President for more Fiscal Stimulus so the Fed would not have to do as much Monetary Stimulus. Fiscal Stimulus would have been more effective at stimulating demand as well but Congress and the Obama Administration could not agree on much in the way of Stimulus. MMT to me is just a different slant on already understood economics.

What I fear is that if we eliminate the restrains on Government borrowing we open the flood gates on pork barrel spending. If the Government spends wisely then borrowed money is leverage to create greater benefit from that spending. If the borrowed money is wasted on bridges to nowhere then there is no productive return on the investment and it does not pay back the borrowed money.

TEK