Basic Definitions
Modern Monetary Theory
MMT believes that the government is the issuer of currency and as such can create new money as public expenditure without raising taxation. Tax is only used for reducing inflation if necessary at some point in time. Something like this already exists as deficit spending when governments need more finance and this is done by borrowing and/or creating new money. MMT is essentially a precursor to TFE which is far more advanced. The former could though act as a stopgap for the research and devlopment of the latter.
Transfinancial Economics
TFE is a futuristic economics which can exist within a more ethical and reformed democratic market/capitalist economy where emphasis is on green products and services. Since most financial transactions are done electronically/digitally it means that they can be tracked, and controlled in real-time or near real-time. As most goods have ID barcodes, or some other relevant code such data could be collected centrally by an Inflation Authority and create Big Data in real time of what is going on in the economy 24/7 and what should be done if problems arise. More importantly, flexible electronic/digital price controls could be used to control inflation when necessary rather than taxation (used only when it is absolutely necessary) and this means that more and more money could be safely phased into the economy without fear of hyperinflation as prices can be instantly capped at a touch of a button on a huge scale. This is revolutionary.
Essentially TFE is similiar to Clifford Douglas and his economic theory of Social Credit (not to be confused with the dystopian Chinese system of the same name) which like MMT can be seen as a precursor. Moreover, Douglas did not live in the computer age, and if he were around today he would probably have appreciated TFE.
The Key Differences..... MMT and TFE
POINT ONE
i) MMT uses taxation as a means of controlling inflation. However, price controls may be necessary at a later stage.
ii) TFE uses highly flexible eletronic/digital price controls as the key tool for inflation. Taxation is avoided as far as is possible. Moreover, these controls virtually monitor the entire economy. They are not just simply targeted at some very small groupings of products and services. This is important to understand.
POINT TWO
Unlike MMT TFE would have a far more advanced understanding of the economy in actual real time, or indeed, near real time. As such it would have a highly accurate understanding of the potential risks involved in creating and electronically transmitting new money into the economy. MMT on the other hand would probably rely on highly questionable conventional economic data (ie. indicators) to reach decisions about creating new money.
POINT THREE
Unlike MMT TFE as indicated already but worth stressing again is that the former would not have a complete understanding of the economy in real-time, or near real time in its present model. However though the TF economy would be monitored in a highly advanced way uncertainty cannot be totally ruled out.
POINT FOUR
Unlike MMT TFE has the speed to instantaneously control inflation as indicated above. With MMT though such a approach does not exist and may not be accurately targetted.
POINT FIVE
Unlike MMT TFE could give us a far more accurate assessment of whether inflation taxation is needed or not. Thus, it could actually predict with a good degree of accuracy as to when such tax could prove to become too heavy for consumers and hence, avoid serious problems on a national scale.
POINT SIX
It is important to say that with the right algorithms inflation checks can maintain the value of money in real-time at the point of sale. This is something MMT cannot do.
POINT SEVEN
Unlike MMT TFE believes that special banks or certain arrangements could be made for private or private/public banks to create new money as something non-repayable if the need arises. Thus, government is not the sole source in being able to do this.
Also, it should be finally added that though transaction data can give us an excellent understanding of the workings of the economy in real time there are other "economic indicators" like those in the so-called Real Time Economy or RTE, and Faster Indicators using a variety of economic activities which can be tracked and monitored.
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