MMT is Macroeconomics Done Correctly
Macroeconomics, as a discipline, is often described through the lens of Modern Money Theory (MMT), an approach mainly applicable to national governments with sovereign currencies.
According to MMT, there are four requirements that identify a sovereign currency by a national government:
The government chooses a money unit of account.
It imposes obligations (taxes, fees, fines, etc.) in the money of account.
It issues a currency denominated in the money of account and accepts the currency in payment.
If the national government issues other obligations, these are also payable in the national government's own currency.
So, what difference does having a sovereign currency make? MMT reveals that a sovereign currency issuer:
Does not face a budget constraint as conventionally defined.
Cannot run out of money.
Can always meet its obligations by paying in its own currency.
Can set the interest rate on any obligations it issues.
This is the essence of Macroeconomics as seen through the lens of Modern Money Theory (MMT)