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Laurie Hyland's avatar

Thank you for the continuous update on the inflation issue 🙏

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Derrin Pierret's avatar

In regards to inflation, I believe MMT has a powerful solution to address it, although I don't know if I've seen it discussed before.

I've seen arguments for a jobs guarantee, which is cool, but what about the other side of that equation... the potential for guaranteed market competition to ensure price stability.

If we used money creation to hire the staff and fund the operating costs of a "Federal Business" whose sole purpose is to create supply to stabilize prices, then what you have is an entity that more or less looks like a privately owned business from the market's perspective (it sells goods and services), but it would not need profits to stay afloat, and therefore would never experience market pressures to raise their prices.

So if a business exists in the market that refuses to raise their prices, can't go out of business, and can't be bought out, then any other businesses competing with it would hesitate to raise their prices, otherwise they risk losing business to the Federal Business. If no one is raising their prices in the market, you have stopped inflation.

Couldn't that work? Maybe I'm missing something?

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