[dragonwriter]

> Run inflation higher than interest rates to push down the nominal value of debt.

MMT [with apologies to The Matrix]: “Do not try and inflate away the fiscal deficit. That's impossible. Instead only try to realise the Truth... There is no debt, and no ‘fisc’.”

While you can preprogram spending and call it “debt” in MMT, you can't understand MMT from within the metaphor of the fisc, the limited public purse which must be filled by revenue and/or borrowing to enable spending.

MMT isn't really about how you use blunt-instrument monetary policy like fed target rates, it's about not needing the separation between sharp-tool “fiscal” and blunt-instrument monetary policy, because “fiscal” policy actually lacks fiscal constraints and has only monetary constraints, and therefore can and should be used instead of blunt-instrument monetary policy. While conventional economists tend to criticize the US for being overreliant on monetary policy because of Congressional failure to deploy fiscal stimulus in recent downturns, MMT dial that up to 11, viewing the divide between fiscally-constrained but more targetable policy and monetary policy which has no fiscal constraints as artificial and unnecessary, as the constraints actually applicable to either are the same and purely monetary.