On “Monetary” Inflation

MMT has money mechanics correct, and like every other heterodox theory recognizes that the system is monetarily austere. Unfortunately like every heterodox theory to one degree or another they are still hypnotized by the quantity theory of money and the velocity of its circulation. Monetary inflation occurs, but money is not its primary cause which makes it a misnomer. It actually occurs because of monetary scarcity….and there not being a better, more rational and more beneficial alternative for commercial agents existing in an austere system with a chronic and general scarcity of actually available individual income/business revenue. Thus when such agents perceive more money coming into the system they raise their prices in the hopes of garnering more revenue. The assertion that inflation will not occur if we only toss a little more money into the economy is a flimsy orthodoxy.

You have to provide the better, concrete and temporal universe alternative by looking directly at the day to day operations of the economy…not just relate to it via abstractions and near misses.

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