Compared to the mainstream attention that Modern Monetary Theory (MMT) is receiving in the United States, it has been met with a more muted reception north of the border. This is partially due to the perception that MMT’s promises of money for nothing are fundamentally dangerous. But this dismissive perception ignores MMT’s underlying theory and downplays its unique democratic and progressive potential.

Considering the low likelihood of the federal government harming the interlocked interests that benefit from asset price inflation, the political path to more social housing is fraught. But even within the confines of the market, there is another solution that can be undertaken by municipalities: cities can establish their own real estate development corporations that build market housing.