One of the things you said was "if it generates inflation, they rise interest". That's a monetarist/neoliberal approach. MMT would look at Government spending (switching from a quantity rule to a price rule) and taxation, using buffer stocks (such as a job guarantee program) as a price anchor.

Bill Mitchell wrote a couple of good blog posts to explain MMT's relationship with inflation and he wrote about some policy considerations at the end of this one:

http://bilbo.economicoutlook.net/blog/?p=13035

He ends by saying this: " The only way that demand-side policies should be used to effect when there is a supply-side motivated inflation is when there is an employment buffer stock system in place."