I first came across Modern monetary Theory a couple of months ago in a televised debate (a discussion really) between Robert Murphy and Austrian theorist and Warren Mosler the founder of MMT. It was a rather droll affair on the whole and I struggled to get a hook on what MMT is about. I think I’m still struggling but I’ve just downloaded Mosler’s “Soft currency economics” booklet to get some traction on this theory. Interestingly, the first page says that sovereign nations cannot go bankrupt unless they choose to. How’s that for starters? So the USA, Australia, New Zealand China can all avoid bankruptcy - unless their central banks (and politicians) choose to default.