Could someone understanding modern monetary theory please explain to me the link between issuing new money and people getting poorer due to dropping currency exchange rates? How is making your population less able to purchase imported goods a lesser problem than "expanding productive capacity" of the state?
https://www.newstatesman.com/politics/greens/2025/12/the-case-for-zack-polanskis-economic-plan
@mapto increasingly more money printed => money becomes less scarce => money becomes cheaper relative to scarcer things => people who are far from the printing press can't keep up with the increasing prices
@L29Ah thanks! But I think this is classical monetary theory, the one we in Eastern Europe have plenty of first-hand experience with. I was wondering if any of the proponents of MMT would bother to explain something different and how would they justify it, given that they seem to come from countries that have heavily invested in currency stability for centuries.
@mapto Ah, so issuing money and buying stuff with it is just a proxy for taking from your subjects directly. You can issue however many money, but the production capacity is limited, so whenever you spend, you make yourself richer and others using the currency poorer. Whether this is a problem more important than the other is the question for your political system control (whether the ruling party can attract votes with such and such policies for example). Or i didn't understand your question.