The QTM IS fallacious. However that doesn’t mean there won’t be higher than normal or so called “good” inflation with MMT. There will be, because what is to stop business decision makers from committing the economic vice of price inflation. Short answer: nothing, because economists and economic pundits confuse alternately goosed and restrained monetary and financial chaos with “free markets” and because palliative reforms are not pattern changes.
Money is issued against production and recalled via consumption within an accounting cycle that after the last word is financially unstable. This is referred to as “real business cycles” by neo-liberal economists that fail to perceive that for profit finance is an illegitimate business model with a monopolistic monetary and financial paradigm. Heterodox economists recognize the flaws in neo-liberalism, but have not recognized the new paradigm concept and how to best implement and regulate it.
It would be very nice if heterodox economists would wake up and die right by no longer contemplating their economic navels, realized that it’s all about “money, debt and banks” as Steve Keen says and the monetary and financial paradigm concept as I have been posting about here for years. Then they could start a mass social movement that communicates the benefits of the new paradigm to both the individual and enterprise….and most importantly would enable us to begin the green industrial policy and fiscal mega projects that might save us from climate change.
Your grand children and great grand children will appreciate your open mindedness to this and your actions regarding it.