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Originally Posted by !@#$%!
how does the mmt explain the weimar republic?
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Bill Mitchell discusses Weimar and Zimbabwe far better than I could.
http://bilbo.economicoutlook.net/blog/?p=3773
In short, MMT says runaway inflation will occur when the productive capacity of the economy reaches it's limit. Both cases have unique historical reasons for reaching this ceiling: reparations and politics in the case of Weimar, and Mugabe's poorly managed land reforms in the case of Zimbabwe.
Contrast that with Japan, which has run fiscal deficits almost consistently for 30 years and has become a world power (aside from the brief periods of budget surplus, which were quickly followed by recession/downturn)