I am sorry; I think that there has been some conflation here. When I said that MMT is untested, what I meant was that no government has implemented a monetary policy that is in accordance with MMT.
The following three statements are independently different.
“Governments should set monetary policy in accordance with MMT.”
“Governments do in fact already set monetary policy in accordance with MMT.”
“This is simply how money works whether governments understand it or not.”
I was referring simply to the second one when I said “untested.”
My other questions were primarily about how the first one can work among countries with varying economic policies, especially countries that are already prone to deflation. (How could this system possibly work in Venezuela?)
I do not believe that QE is necessarily consistent with MMT or inconsistent with Keynesian economics; it is largely a question of how it is implemented.
