Can you bullet-point explain what MMT means for deficits in your opinion?
Does it mean that any country can print its way to prosperity? Are you saying printing > borrowing?
Can you spell it out?
ok I'm byke
So it seems to me that deficits (or specifically eradicating them) are much less of a priority in the world as described by MMT - as it is just the difference between what the government spends and what it receives in taxes, the difference is what has gone into the economy, that's all.
I was trying to think of an example, but I don't think the description works well on a small scale. Certainly, there are some things a government could increase its spending for while not expecting a good return in taxes (a hospital or something), which would increae the deficit, and would arguably be a pretty good reason to.
Inflation is a much higher priority, and puts a limit on how much the government can spend.
Hmm, on the face of it that is the suggestion
but I am sure this is affected by many variables such as how that increased money supply is used (who receives it/where it is spent, which in turn affects what sort of economic activity that created money is used for, and as a result how much of it can be recouped/'cancelled' by taxation) Plus borrowing (from financial markets) comes with higher costs,
I think?
www.bbc.co.uk
fullfact.org
www.theguardian.com
