In the simplest terms, Modern Monetary Theory is an economic school of thought that begins with this idea: governments that print their own currency can’t, by definition, run out of money. Proponents of MMT argue that rather than attempting to balance the budget each year (by matching spending with taxation and other revenues), governments should instead aim for an economy that has full employment. A government could do that by spending and thus, creating jobs, even if that means running persistent budget deficits since those budget deficits could be funded by creating more money.