Episode Details

Since Richard Nixon temporarily ended the convertibility of the US Dollar into gold on August 15th, 1971, economists have been debating the importance of budget deficits.  This latest group promises that money doesn't grow on trees but sovereign governments can print and spend unlimited amounts of currency, as long as inflation is held in check.  Advocates of this policy are the Modern Monetary Theorists (MMT).  They say deficits don't matter because sovereign governments can always manufacture money to pay their debts.  But can this be?  Aren't there other variables to consider?  Join me today as we explore this new fad and poke dozens of holes in this pipe dream.