Modern Money Theory (MMT) is an approach in macro-economics which argues against this12. MMT says that in nation states with fiat money, sovereign currencies and central banks; taxation is the means by which governments remove money from circulation (e.g. to prevent inflation or to create particular incentives within the private sector). There is no restriction on governmentsâ€™ ability to spend by creating new money.
Andrew Jackson - Where Does Money Come From - Positive Money pdf from epub