This refers to an economic theory which argues that a government that borrows in its own currency can technically never default on any of its liabilities. This is because these governments can simply print fresh money to pay off their debt. Many supporters of modern monetary theory believe that governments should simply stop worrying about fiscal deficits. Instead, they argue, governments should increase their social spending through programmes like universal basic income and other forms of social welfare. Critics of modern monetary theory, however, say that such a policy will lead to higher price inflation, which is simply an indirect tax on citizens.
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