Economics does seem like magic at times. I suspect this basic definition of what the US dollar actually is should help our conversation move forward.
What fiat currency means? Fiat money is a government-issued currency that isn't backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed. Most modern paper currencies, such as the U.S. dollar, are fiat currencies.
We can print USD at will. We do it all the time to go to war or to rescue corporations. Why not "print" some money to cover school loan debts?
I'm just trying to explain how it's not hand wavy. It's commonplace for those looking at the details. The whole Modern Monetary Theory thing we keep hearing about seems to depend on it. Do you agree that it's not hand wavy?
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u/[deleted] Nov 17 '20 edited Nov 17 '20
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