In this era of monetary fiction, one tends to read all types of undocumented and misguided views on monetary policy. However, if there is one that really is infuriating is the MMT science fiction.

One of its main principles is based on a fallacy.

Inflationists are happy. Inflation expectations rise to five-year highs and some rub their hands with the idea that their grand plan to create inflation by decree is going to be a success.

Inflation, the tax of the poor, applauded by no consumer anywhere ever.

Many economists point to the “abnormal” rise in savings as a bullish signal that will drive a stronger recovery and a consumption boom.

The figures look impressive. In the United States, JP Morgan estimates $2 trillion in deposits, up from $1 trillion before the pandemic. In the Eurozone, Bloomberg Economics estimates an excess of currency and deposit holdings of 300 billion euro, also double the level seen prior to the Covid-19 crisis. However, the devil is in the details.