We would then be getting the story that the conservative economists had always warned about, with printing money leading to inflation. How high inflation goes would depend on how far we go down the just print money route.
All of our models show that inflation is a gradual process, with more rapid price increases leading workers to demand higher wages, which are then passed on in another round of price increases.
It's hard to say with any certainty how fast this inflation would accelerate since we haven't really had much of a problem with inflation since the 1970s, almost 40 years ago. The world is a very different place today, with the US having a much more open economy and unions being far less powerful.
Still, there is little reason to question that the standard economic logic will still apply. If we have a very tight labor market where employers are competing for workers by bidding up wages, this will lead to upward pressure on prices, which will cause workers to demand higher wages to maintain their standard of living.
MMT does not give us a way around this picture. While it was important to point out that we didn't have to worry about deficits in the downturn, telling us that we can just print money as the economy nears full employment does not make sense. If we want to have a big GND, we will have to find some ways to pay for it.
We should perhaps not blame politicians who advocate a GND without telling us how they plan to pay for it. After all, Republican politicians have been getting elected for 40 years by promising big tax cuts without saying how they would pay for them. It is understandable that Democrats might think that they should also be able to promise now and pay later.
But, if they tell us that we don't have to pay for it, they are wrong. The printing press will not do the trick.
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