Modern Monetary Theory facts for kids

Modern Monetary Theory or Modern Money Theory (MMT) or Modern Monetary Theory and Practice (MMTP) is a macroeconomic theory and practice that sees the practical uses of fiat currency in a public monopoly from the issuing authority, normally the government's central bank.

MMT says that the government could use fiscal policy to achieve full employment, creating new money to fund government purchases.

Images for kids

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  Illustration of the saving identity with the three sectors, the computation of the surplus or deficit balances for each and the flows between them

See also

In Spanish: Teoría monetaria moderna para niños