Glossary for the FAQS

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Chartalism - The idea that money derives its value from government fiat and acceptance of it for tax payments

Deficit spending - When government spending exceeds tax revenue over a fiscal period

Debasement - Reducing the precious metal content of coins while maintaining face value

Devaluation - Deliberate downward adjustment of a currency's value relative to others

Endogenous money - Idea that money supply is determined by economic factors like lending, not the central bank

Fiat currency - Currency that is not backed by a commodity like gold, but derives value from government regulation

Foreign sector - Other countries that a nation conducts trade and financial transactions with

Functional finance - Fiscal policy focused on achieving full employment and economic stability

Hyperinflation - Extremely high and accelerating inflation, like over 50% per month

Job guarantee - MMT proposal for government to provide employment to all job seekers

MMT - Modern Monetary Theory

Monetary sovereignty - The power of a country to issue and control its own currency

Private sector - The part of the economy composed of households and businesses

Public sector - The government and public institutions

Seigniorage - Profit made by government from issuing currency