Season Premiere with PJ Pierre on MMT, Macro and Fiscal Dominance

In this episode, PJ Pierre, a leading voice in the field of Modern Monetary Theory (MMT), joins the ReSolve team for a deep dive into the complexities and implications of MMT. The conversation explores the role of government in fiscal policy, the impact of deficit spending, and the potential consequences of MMT on the economy.Topics Discussed• The discussion begins with an examination of the conventional belief that government must first collect taxes before spending, and how this view influences perceptions of government solvency and private investment.• The conversation then shifts to the sequence of government spending and taxation, and the implications of a floating exchange system.• PJ Pierre provides an explanation of how the government can issue currency and the potential consequences, such as inflation or a collapse of the currency.• The role of the banking system within the MMT framework is also discussed, highlighting the complexity of this economic model.• The conversation delves into the concept of fiscal dominance and the potential for the Federal Reserve to lose its monetary policy tool for regulation.• The episode concludes with a discussion on the impact of inflation and the role of demographics in economic demand.ConclusionThis episode offers a comprehensive exploration of Modern Monetary Theory, providing valuable insights for anyone interested in understanding the potential implications of MMT on fiscal policy and the economy. PJ Pierre's expertise provides a nuanced perspective on this complex economic model, making this episode a must-listen for those interested in economic theory and policy.