[brightball]

In all circumstances. It’s a nonsense theory that is entirely based on the idea that everybody in the world will accept the value of our currency is maintained while no other country on earth gets this benefit.

The sarcasm was warranted.

[TechBro8615]

I don't remember adding a sarcasm tag. :)

I do agree that only the US (or whichever country controls the reserve currency) could really get away with this. But it already gets away with quite a lot, including "exporting inflation," so why not squeeze the dollar for all its worth as long as it's printed by the world's only superpower?

[acjohnson55]

I'm not an expert on MMT, but I've never heard anyone say that. MMTers say that a government cannot be forced to default on debts denominated in its own currency, but that doesn't mean it can control exchange rates if it chooses to prints money to pay them. MMT encourages a broader range of thinking about what's possible, but those possibilities aren't free of consequences.

[enriquec]

You've never heard anyone say the main - and very popular - counter argument? (which is correct IMO)

Seems disingenuous.

[acjohnson55]

Re-reading the comment, I misunderstood what they were saying the counterargument to MMT was. But I still think they're wrong. The rest of the world accepts all sorts of things that we might not expect, such as a debt to GDP ratio over 100. A lot of conventional economic arguments are rigorously weak, and while I think policy recommendations from the MMT camp are very debatable, I find their model to be thoroughly thought through.

[pishpash]

Those consequences are a soft form of default. They played some word games and turned hard defaults into soft defaults. Great?