If I have any MMT readers, I’d appreciate it if they could answer this brief query:
MMT suggests that governments are not revenue constrained; they are only constrained by inflation, and until that becomes a problem they can print however much money they want to fund expenditures. Once inflation does become a problem, they can tax away the excess income. This is correct, no?
So here is my problem: if governments are inflation constrained, and they reduce inflation via taxation, isn’t this ultimately the same thing as if they were revenue constrained? Why not eliminate the middle man and simply raise taxation to fund expenditures?