So-called Modern Monetary Theory gained visibility among some economists and elected politicians leading up to the 2020 presidential election as an explanation for why the U.S. government could increase borrowing to finance infrastructure and other investments without threatening to push the inflation rate up.

Question

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Modern Monetary Theory (MMT) suggests that a government that issues its own currency can borrow and spend more freely, as it can always create more money to pay off debt, and it gained attention during the 2020 election cycle.

So-Called Modern Monetary Theory Gained Visibility Among Some Economists and Elected