Source: Modern Monetary Theory gains traction in the US | World Finance
I think this is the best text description of MMT. A bit too long, perhaps. 15 minute read?
This paragraph, and especially the highlighted are particularly clear:
The theory is based on three economic principles that sound simple enough.
First, fiat currencies are public monopolies – that is, central banks are the only institutions authorised to issue them. These currencies are also the only accepted payment for taxes. Nations with control over their own floating currencies are not financially constrained because they pay for their obligations with the very currency that they emit and control.
Second, governments that sell bonds in a nation’s currency cannot technically default on their debt, even though they may choose to do so.
And third, MMT argues that it is normal for governments to run deficits. In fact, every dollar spent by the government that exceeds the money received from taxes is one more dollar for the private sector. In essence, a public deficit is a private surplus.
