Scotonomics – MMT and the Climate Movement

MMT and the Climate Movement

Modern Monetary Theory (MMT) discusses fiscal space—the ability for governments to create currency and spend on the public purpose—not in monetary terms but in functional terms: the question is not where to find the money but does the government have “available real resources that can be brought back into productive use” (Mitchell 2020: 3). This is the core insight of MMT and it highlights that fiscal space is much larger than mainstream economists, policymakers, commentators and the public believe.

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