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How Modern Monetary Theory Advocates View Money and the State

How Modern Monetary Theory Advocates View Money and the State
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Frank Shostak
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Commentary

According to the Modern Monetary Theory (MMT), money is something decided by the state. The MMT regards money as a token. For instance, when an individual places a coat in the cloakroom of a theater, he receives a tin disk or a paper receipt. This receipt or disk is proof that the individual is entitled to demand the return of his coat.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.