Reply #29: If the Treasury uses the trillion dollar coin to buy bonds from private markets, it will increase

[BzaDem]

the amount of money in circulation. When you give the private economy a trillion dollars in exchange for a bond that is then destroyed, that is by definition increasing the money supply. I know MMT doesn't really think increasing the amount of money (relative to bonds) in circulation isn't inflationary, but for everyone else under any normal economic school of thought, it is inflationary after the economy gets back to capacity. Every other economic school of thought realizes that treasury bonds and hard cash are only equivalent in a liquidity trap (after which the "net financial assets" formulation that equates bonds and hard cash is basically useless).