IV 
117TH CONGRESS 
1ST SESSION 
H. RES. 267 
Recognizing the duty of the House of Representatives to abandon Modern 
Monetary Theory and recognizing that the acceptance of Modern Mone-
tary Theory would lead to higher deficits and higher inflation. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2021 
Mr. HERN (for himself, Mr. BUDD, and Mr. BAIRD) submitted the following 
resolution; which was referred to the Committee on Financial Services 
RESOLUTION 
Recognizing the duty of the House of Representatives to 
abandon Modern Monetary Theory and recognizing that 
the acceptance of Modern Monetary Theory would lead 
to higher deficits and higher inflation. 
Whereas noted economists from across the political spectrum 
have warned that the implementation of Modern Mone-
tary Theory (referred to in this preamble as ‘‘MMT’’) 
would pose a clear danger to the economy of the United 
States; 
Whereas, in July 2019, Zach Moller, deputy director of the 
economic program at Third Way, wrote in a memo the 
problems associated with MMT, including that— 
(1) ‘‘Under an MMT regime, policymakers would 
need to respond to inflation by doing two of the most un-
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popular things ever: raising taxes and cutting spending. 
. . . We can easily imagine divided government’s paralysis 
to fight inflation: Republicans refusing to raise taxes and 
Democrats refusing to cut spending.’’; 
(2) MMT ‘‘ends our central non-political economic 
manager’’ and ‘‘markets trust the Federal Reserve and, 
as a result, businesses and individuals have well-anchored 
inflation expectations. . . . To solve the challenges higher 
interest rates create, including a possible interest financ-
ing spiral, MMT generally says that the Fed will be 
tasked with keeping interest rates low by making the 
Federal government, through the Fed, the consistent (if 
not the primary) purchaser of bonds. This is a different 
mission for the Fed than it has now. The Fed would no 
longer be tasked with intervening to keep prices stable 
because it would be too busy buying bonds. Bond pur-
chases by the Fed generally increase inflation. Thus, the 
Fed would no longer be an independent manager of the 
economy.’’; and 
(3) MMT ‘‘destroys foreign confidence in America’s 
finances. . . . Holders of U.S. debt (in the form of treas-
uries) expect stability in value, a return from their invest-
ments, and the ability to be paid back. MMT blows that 
up. Bondholders would no longer be assured a return on 
their investment, and it will no longer be as desirable for 
our creditors to hold U.S. debt.’’; 
Whereas, on May 17, 2019, Joel Griffith, a research fellow 
at The Heritage Foundation, wrote in an article entitled 
‘‘The Absurdity of Modern Monetary Theory’’ the fol-
lowing: ‘‘There is no free lunch. We will pay either 
through the visible burden of direct taxation, the hidden 
tax of inflation, or higher borrowing costs (as the govern-
ment competes with businesses for available capital). 
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