would you explain how this mechanism works. please prove it with the real data, events, facts, processes. Afterall, this is economics. it's all about data and hard facts. I don't agree with a lot of things in your responses (it seems your understanding is made up by perception and your own interpretations or else show me the facts, the actual mechanisms that have been implemented in the real world to address the debt problem. perhaps, those economists received degree from a university in the Carribean. That's why their contribution(s) isn't recognized by the Nobel award people.
Sadly, there is no education without effort. Supporting arguments you ask for can be found here: L. Randall Wray, "Understanding Modern Money" The original is out of print but I think Wray has a newer addition under a revised title (see Amazon). The Introductory Chapters contain one of the most thorough treatments of Money that exists. I am happy to guide you., but I won't do the work for you. Among the more prominent of the many MMT "Carribean economists" are the first four I've listed below.. Look up each in Wiki, except Tankus. This will give you their formal credentials and allow you to discover for yourself which, if any, got much beyond high school . Please let us know what you find out. Mitchel and Wray have a new undergrad text out. It must have been ghost written? I included Tankus because I didn't want you to be unhappy in you conclusions. 1. L. Randall Wray 2. Stephanie Kelton 3. William Francis Mitchell 4. Warren Mosler 5. Nathan Tankus (go here: https://www.tbsnews.net/world/tankus-law-student-no-degree-turned-economic-analyst-176920) You may find some of the above mentioned in the Wiki article on MMT. For sure you will Find a critique of MMT there. It's certain to please you. see https://en.wikipedia.org/wiki/Modern_monetary_theory
Any such test of whether MMT fits the "data and facts" is a joint test of MMT and the model of the economy used in the test. This is similar to Fama's argument that most tests "disproving" EMT are joint tests of EMT and CAPM (he favors the interpretation that CAPM is flawed, not EMT). So you have to specify the model. Plugging assumptions of MMT into the standard DSGE models show's that MMT does not fit the "facts" of the post-crisis US economy (per several studies, notably Liu, Minford, Ou 2024). Similary MMT applied to IS/LM leads to implausible IS elasticity estimates (IS curve is near vertical -- LM curve is horizontal as interest rate is set by govt, but that doesn't matter as, under MMT, a shift in rates or LM curve will have no or infinitesimal effect on IS). This is why I asked Piezoe for a link to an MMT-friendly economic model. We need to specify one to run a fair test.
It's coming, I hope, or maybe not! Just no time at the moment, and the answer you deserve for an interesting question, that i don't yet know how to answer, is something that requires contemplation. I wanted to first review Minsky's comments on his detailed, and wonderful critique in his "John Maynard Keynes" [in my library], which includes Hicks' [IS/LM Hicks] commentary on Keynes. I haven't forgot, just super busy at more pressing concerns at the moment.