[jameslk]

This is basically a modern money theory view (correct me if I’m wrong)?

It relies on discipline in the government to prevent inflation, e.g. raising taxes and cutting spending. But this is a similar problem to what we have already. There is no discipline, just short term thinking due to bad incentives.

http://www.thomaspalley.com/docs/articles/macro_theory/mmt_r...

[mindslight]

Perhaps, from the bits I've read? I have arrived at it coming from an Austrian/conservative economics perspective. It's clear that we have had profligate monetary creation for decades without corresponding high across-the-board price inflation. My older self is also willing to accept the orthodox response to Gresham's law whereby a deflationary currency would be quickly replaced with a different inflating one. So then the question becomes what are we spending the new money on? Presently that is mostly subsidized low-interest loans.

If your concern is discipline, then it's easy enough to imagine a department similar to the Fed that comes up with a figure of how much new money to create for the right amount of average price inflation, with much discretionary spending by Congress being set in terms of that figure. That would surely be more responsible than the current system where one political team talks in terms of a pretend "fiscal responsibility" that only hamstrings Congress but doesn't actually affect monetary inflation.