Vincent Cate — CMMT - Cate's Modern Monetary Theory

This CMMT model is just a slight correction to MMT or Modern Monetary Theory. While they have #1,#2,#3 above they are not consistent in how they treat bonds and do not have #4,#5. They say all government spending is from new money but then also have the government spending money from bonds. They say all spending is from new money but also say new money is not spent to pay off bonds. These errors make standard MMT far more complicated and not match reality. In particular, hyperinflation really happens but in MMT there is no reason for it. They have to say that the cause of the hyperinflation of money is outside their theory of money. This is just silly. With this little fix hyperinflation is easily explained. So CMMT is a big improvement over MMT. CMMT also stands for Corrected Modern Monetary Theory. :-)

FYI

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CMMT - Cate's Modern Monetary Theory
Vincent Cate