Dear John,

Have you heard of Modern Monetary Theory (MMT)?

Put simply, it is the idea that governments can print as much money as they want and face no consequences.

Its advocates assert that a government that issues its own currency (like Canada) cannot default on debt issued in its sovereign currency because it has the power to print as much currency as needed to pay off the public debt.

But where MMT has been tried in the past – for example, Greece and Latin America – it has resulted in inflation, sometimes even hyper-inflation, with devastating consequences.

A new Fraser Institute study out today confirms that the idea that the Bank of Canada can continue to finance government debt by printing money without a clear commitment to repayment poses enormous risks to the Canadian economy.

Get more details here, and be sure to spread this one far and wide!

Stay safe,

Niels Veldhuis
President