The infrastructure act signed into law ultimate week marked a defeat for the faction of modern economists in ascendancy in 2020. For those advocates of modern monetary theory, the insistence by means of each political events that all of the $550 billion of latest spending be matched by means of offsetting income, referred to as “payfors,” is going in opposition to their trust that cash is simply a device for presidency.

It is a brief rhetorical setback. The truth is that MMT’s concepts have insinuated themselves deep into executive, central banking or even Wall Boulevard—and the infrastructure act is in fact deficit-financed anyway.

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