Modern Monetary Theory: Money, Work, and Sovereignty

This article provides a comprehensive introduction to Modern Monetary Theory (MMT), shedding new light on the nature of money, which in this approach is not a commodity but a social debt relationship and unit of account. Drawing on the work of L. Randall Wray and Hyman Minsky, the authors explain that a sovereign state issuing its own currency cannot technically go bankrupt, and its spending is limited not by taxes but by available real resources and the risk of inflation. The text discusses in detail the mechanism of "money-driving taxes" and the role of the banking sector in money creation. A key element of MMT's proposal is the Employment Guarantee program, which acts as an automatic stabilizer and nominal anchor for the currency's value, eliminating involuntary unemployment while maintaining price stability.