OK, so this might be true:
Of course, MMT might say that this is not a challenge. And in some countries, like the UK, I would say that is true. It is only ignorance of the possibilities within the economies that meet the criteria for MMT to succeed that prevents them from having the funding needed for Covid.
But not all countries have their own readily acceptable currencies, or a well-functioning central bank. Many have tax systems that fail them badly. And many countries are also forced to borrow, and make international settlement of their debts, in currencies other than their own. What is the answer for them, given that the conditions for MMT to work take a long time to produce?
Yes, OK, Venezuela has done lots of MMT and as a result doesn’t have a currency that works outside its borders. That makes it difficult to buy vaccines. This could indeed be true. Therefore:
So what is there to do? This Is where I think that new, hypothecated, taxes have a role to play. There are two such taxes to consider.
So, make corporations – who didn’t cause coronavirus – and wealthy people – who also didn’t cause it – pay more tax with higher corporate income tax and a wealth tax. Hmm, in order to do what?
Third, something else that is necessary is a pool of revenue available for developing countries to use to make payment for the Covid vaccines and other medical supplies that developing countries might need which will be priced in the currencies of the developed countries that might otherwise be unavailable to them. So, for example, wealth taxes could be used to create a fund to pay for such vaccines, medical supplies and training and support that can only be settled using the dollar, pound, euro or yen, which are always currencies in desperately short supply in developing countries, and which are particularly so at times of economic crisis. The hypothecation is in this case potentially necessary precisely because most developing countries do not meet the MMT criteria of having a currency that is internationally acceptable, whatever the reason might be.
But if MMT works then we don’t need to have a wealth tax to pay for all of this, do we? Just get the central banks of the developed countries to print more money and we’re done – after they’ve given it to the poor countries to pay their covid bills that is.
If it’s foreign currency that’s the shortage then we don;t need to tax folks in rich countries to get it, we just get the printers in the rich countries to make it. If this isn’t true then nor is MMT.