Your analysis isn't quite correct about the economics of the giant platinum coin. It won't lead to any sort of inflation (by itself). The reason has nothing to do with MMT or anything like that.
Short version: the government deposits the trillion-dollar coin at the Fed. The Fed then immediately sterilizes the inflow by selling off a trillion dollars worth of Treasury bonds. You might wind up with an interest rates hike (maybe depending) but not inflation.
Think of the platinum coin as the equivalent of a big foreign exchange inflow in a country with a fixed exchange rate.
Hi, Maia!
Your analysis isn't quite correct about the economics of the giant platinum coin. It won't lead to any sort of inflation (by itself). The reason has nothing to do with MMT or anything like that.
Short version: the government deposits the trillion-dollar coin at the Fed. The Fed then immediately sterilizes the inflow by selling off a trillion dollars worth of Treasury bonds. You might wind up with an interest rates hike (maybe depending) but not inflation.
Think of the platinum coin as the equivalent of a big foreign exchange inflow in a country with a fixed exchange rate.
A bit more detail, with accounting:
https://noelmaurer.typepad.com/aab/2021/10/the-trillion-dollar-coin.html