A good place to start is with a simple description that you can carry in your pocket: MMT proposes that a country with its own currency, such as the U.S., doesn’t have to worry about accumulating too much debt because it can always print more money to pay interest. So the only constraint on spending is inflation, which can break out if the public and private sectors spend too much at the same time.
In my opinion, this is not how current economy works. Countries are not closed economies, but highly dependent of international trade. Countries that accumulate too much debt not only generates inflation, but also distrust. Currency value sinks and people use other payments methods.
One of the MMT rules is that only the country can issue currency, and that is false. This theory underestimates the capacity of private banks to issue currency and manipulate interest rates. And geopolitcs is another factor that must be considered.
If a country stops taxation and issue more debt, all citizens and companies will abandon that currency and use other currency to save money and maka payments.
RE: MODERN MONETARY THEORY - can anyone explain major differences between MMT and current monetary system?