MMT in Canada

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A Sovereign Fiat Currency System

 

"In 1971 the Nixon administration abandoned the gold

 

standard and adopted a fiat monetary system,

 

substantially altering what looked like the same

 

currency. Under a fiat monetary system, money is an

 

accepted medium of exchange only because the

 

government requires it for tax payments. Government

 

fiat money necessarily means that federal spending need

 

not be based on revenue. The federal government has no

 

more money at its disposal when the federal budget is in

 

surplus, than when the budget is in deficit. Total federal

 

expense is whatever the federal government chooses it

 

to be. There is no inherent financial limit. The amount of

 

federal spending, taxing and borrowing influence

 

inflation, interest rates, capital formation, and other real

 

economic phenomena, but the amount of money available

 

to the federal government is independent of tax revenues

 

and independent of federal debt."