Modern Monetary Theory for Conservatives | The American Conservative

Modern Monetary Theory for Conservatives | The American Conservative

Re-thinking the conservative approach to government spending. Once conservatives understand how money works they can start to see the benefits of government fiscal spending as well! In fact, one wonders if many conservatives already understand how it all works when they didn’t appear to care about government deficits as of recent. There … Continue reading Modern Monetary Theory for Conservatives | The American Conservative

This Year’s Underground Sensation: Modern Monetary Theory | The New Republic

This Year’s Underground Sensation: Modern Monetary Theory | The New Republic

The economic ideas that once fueled deficit mythbusters and provided hope for a pandemic recovery have spawned a vibrant political subculture. Once people understand where money comes from then they’ll realize that we can start addressing things like climate change and student loans without causing any further hardship. Source: This Year’s Underground … Continue reading This Year’s Underground Sensation: Modern Monetary Theory | The New Republic

Can governments afford the debts they are piling up to stabilise economies?

Can governments afford the debts they are piling up to stabilise economies?

Yes — It poses no inherent danger to states that issue their own currency There are three real reasons. First, a currency-issuing government never needs to borrow its own currency. Second, it can always determine the interest rate on bonds it chooses to sell. Third, government bonds help to shore up the … Continue reading Can governments afford the debts they are piling up to stabilise economies?

How the Government Pulls Coronavirus Relief Money Out of Thin Air - The New York Times

How the Government Pulls Coronavirus Relief Money Out of Thin Air – The New York Times

Once-fringe ideas in economic theory are now nearly official policy as government borrowing surges and the Federal Reserve signals it could buy unlimited debt. “Once the central bank buys them (the bonds), it’s as if the Treasury never issued them in the first place,” said Dr. Kelton, “For all intents and purposes, … Continue reading How the Government Pulls Coronavirus Relief Money Out of Thin Air – The New York Times

Bank of England to directly finance extra government spending

Bank of England to directly finance extra government spending

The UK has become the first country to embrace the monetary financing of government to fund the immediate cost of fighting coronavirus, with the Bank of England to directly finance the state’s spending needs on a temporary basis. The move would allow the government to bypass the bond market until the Covid-19 pandemic … Continue reading Bank of England to directly finance extra government spending