soar, but suddenly they have cornered the market in mountain goat wool. Ralph Lauren buys up the whole lot for his new line of "Mountain Coats". Exchange floods in. The rube-dollar stabilizes. The Soroses of the world make their money by forcing forcing governments to defend a too-high peg. How is he going to make money by attacking the nonexistent peg of Nowhereistan? "How is he going to make money by attacking the nonexistent peg of Nowhereistan?" He sells Baht and buys dollars enough to move the currency a bit, and then he makes money by selling dollars to and buying Baht from desperate Thai businesses that are scrambling to cover their dollar debts. You don't need to make money off the government sector when the private sector is highly levered with foreign obligations. On the other hand, if you prevent both the government and the private sector from having unhedged foreign currency liabilities, then I don't see how he makes money off the country, although he could still make money from trend-followers. I'm not such a fan of the name "modern monetary theory" -- it's not modern (the basic idea goes back to Plato), it's not monetary (it's emphasis is fiscal) and it's not a theory (for the reasons you site). Plus it's not catchy. In contrast, Soft Currency Economics is a brilliant name -- audacious, in-your-face, witty and proud to be the antithesis of hard currency economics. What committee decided on MMT vs. Soft Currency? I never heard