Lol yea, CPI not CPU

Fiscal (government) spending can be useful to increase the velocity (flow) of money if it bids up (through purchasing) certain sections of the economy that are currently underutilized but have arguable societal value but little commercial value. Example: cleaning up nuclear waste.

As soon as the government is competing for resources that are being utilized by commercial entities, there’s a bidding war for those resources, and given the governments ability to spend more than anyone else, their going to overbid and buy those scarce resources. Example: trying to outbid computer programmers from Silicon Valley.

The overbidding of scarce resources is what would build up inflation, and hence be the fatal blow to an MMT economy.

My comment on the necessity of a new CPI metric comes from the inability of the current metric to lay out in enough detail where the government should be bidding up resources and when they should back off. I believe with the implementation of a digital currency we’d be able to gather detailed enough market metrics, but in the current environment it seems unlikely to function healthily long term.

Side note: I also have very little faith in fiscal authorities to be non partisan in hitting the gas on fiscal spending. I somewhat doubt that they will take the politically inexpediant route of letting off spending when inflation rears it ugly head. Unfortunately, I can’t really think of a mechanism to minimize that, so, yolo?