China

[George Soros] later admitted in 2001, that the local monetary authorities did a good job in preventing the collapse of the Hong Kong market. The precise way that China avoided this speculatory attack was through its strict state-set capital controls and its state-owned financial system

To use the metric of return on assets (ROA) and liquidity ratios to measure the effectiveness of China’s state-owned banking system is ultimately meaningless. This is because Chinese banks take on the means primarily resembling development banks. In turn, this system has an overall positive impact in the long term, despite not having the myopic short termism of Western commercial profit-oriented banks. This is due to the ability of long-term funding at low interest rates being key for the sake of large-scale infrastructure construction, which in turn is vital for long term economic development.

The reason why China’s economy is able to be stable and avoid the damages of the Great Financial Crisis of 2008 and the COVID Crisis of 2020 was precisely because it was able to draw up large amounts of State investment to offset the decline in private investment.

MMT isn’t a politics and isn’t prescriptive. It’s simply descriptive of fiat monetary sovereignty. Many liberal proponents and detractors alike seem to want to load up MMT with all sorts of things that it isn’t. It certainly isn’t going to solve all of capitalism’s internal contradictions under a dictatorship of the bourgeoisie. But China seems to be showcasing its veracity.