[ExI] mmt question

[spike at rainier66.com]

Have we anyone here who is up to speed or has expertise on Modern Monetary
Theory?  I have looked into various sources and haven't found an answer to a
question I eventually posed to ChatGPT.  It didn't really answer.  Here's
the question:

 

 

Me:  What happens in modern monetary theory when part of a government
accepts it and part of that government rejects it?

 

ChatGPT:

Modern Monetary Theory (MMT) is an economic framework that describes how a
sovereign government that issues its own currency can use fiscal policy to
achieve full employment and price stability.

If part of a government accepts MMT and part of that government rejects it,
then there may be a disagreement about how to approach economic policy. This
could lead to political gridlock and a lack of consensus on how to manage
the economy. Ultimately, the extent to which MMT is implemented in a given
government will depend on the political power dynamics at play, as well as
the prevailing economic conditions and priorities of the country.

 

 

Can anyone here do better?  It looks to me like if a government, or more
specifically a congress in charge of government spending, is split between
modern monetary theory accepters and rejectors, it sets up for an epic fail,
as the USA is likely to witness shortly.

 

spike

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