Modern monetary theory (MMT) is a way of thinking about money and the economy. It says that the Australian government is the only one who can create Australian dollars, which are needed for people to pay taxes and buy government bonds.
Here's what it means:
The Australian government makes Australian dollars and controls its supply. People need Australian dollars to pay taxes and buy government bonds. To get these dollars, people have to sell things or borrow money from the government.
The government spends or lends money first, and then people can pay taxes or buy government bonds. MMT is different from other ideas because it doesn't believe the government needs to collect taxes or borrow money before it can spend.
The main idea is that people need the government's money to pay taxes and buy bonds. MMT also says that when the government spends money first and borrows later, it doesn't take away from private spending or borrowing. This means the government's actions don't cause higher interest rates or make it harder for businesses and people to borrow money.
So, worries about the government not having enough money or causing problems for the economy don't really apply in this situation.