MMT Explains Our 2 Tiered Economy and Inflation

Kevin Newman
4 min readNov 23, 2021

A novice take on the way Modern Monetary Theory (MMT) explains inflation from a permanent K shaped economy.

Basically, MMT says we get inflation when money policy juices demand and we are at full employment, or we juice just one sector which is at full employment, while the others are constrained. This all follows from the basic rules of supply and demand.

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