This website is a portal to information on Modern Monetary Theory, with particular interest and relevance to Canada.
by Keith Newman
Progressive Economics Forum:
_________________________________________________________
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."