Yes, debt is just journal entries. Is inflation a measure of prices or the amount of money in circulation? “Things are different now”(?), yes, but the near, intermediate, and long-term results of Federal Reserve shenanigans are not a true test of MMT because of the COVID-19 factor. If the new trillions merely flow briefly before hiding in bank reserves, the continued slow velocity there may hide what is really happening for a while longer. Eventually the parabolic increases in M1 and M2 will show up in price levels. How society handles this after “forever low interest rates” will be fun to watch.
Yes, debt is just journal entries. Is inflation a measure of prices or the amount of money in circulation? “Things are different now”(?), yes, but the near, intermediate, and long-term results of Federal Reserve shenanigans are not a true test of MMT because of the COVID-19 factor. If the new trillions merely flow briefly before hiding in bank reserves, the continued slow velocity there may hide what is really happening for a while longer. Eventually the parabolic increases in M1 and M2 will show up in price levels. How society handles this after “forever low interest rates” will be fun to watch.