Why Don't Governments Just Print More Money? | MMT Myth | IEA Interview

Modern Monetary Theory has taken the internet by storm. From viral Twitter threads to bestselling books, MMT promises that governments can spend freely without the usual constraints — that money can be printed to fund hospitals, green energy, and public services without consequence. But is any of it true? In this episode, Christopher Snowdon sits down with economist and author Emmanuel Marjorie, who spent years studying MMT from the inside, to find out.Emmanuel lays out the most charitable case for MMT — the steelman version its own proponents rarely articulate this clearly — before systematically dismantling it. From the theory's flawed inflation model to the accounting mistake at its very foundation, the conversation exposes why a theory that sounds intuitive to millions of people online falls apart under even basic scrutiny. As Emmanuel reveals, MMT was not disproved by its critics — it was undermined by an error its founders never acknowledged.If you have ever wondered why governments do not simply print more money to solve their problems, or why you pay tax if the state can create currency at will, this is the episode for you. Emmanuel's new book, If You Can Just Print Money, Why Do I Pay Taxes?, is out now (https://emaggiori.com/mmt/) The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe