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UUP - The Debt-To-GDP Ratio Does Not Matter: The Fiscal Constraint Debate
Invesco DB USD Index Bullish Fund
Most debates around Modern Monetary Theory ((MMT)) revolve around the role of operations and the meaning of the "fiscal constraint": what are the limits on fiscal policy? (The focus on this one topic is either the result of this being the most interesting topic, and/or critics not being bothered to read anything else in the MMT literature.) These debates are typically uninteresting, because they end up being purely semantic debates, and the two sides actually agreeing on the underlying principles. To avoid wasting time on such debates, we need to re-cast the debate into a