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MMT in Canada


This website is a portal to information on Modern Monetary Theory, with particular interest and relevance to Canada.




MMT: What it Means for Canada



What it Means for Canada


by Keith Newman



Progressive Economics Forum:

A Trillion


Coin for Canada?



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."