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

$2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay for It?” Question

$2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay for It?” Question

When all of this is behind us, to the extent that it ever can be, let’s not forget what we’ve learned: Congress knows how to spend money when it wants to. Will be helpful when it comes time to address climate change. Source: $2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay … Continue reading $2 Trillion Coronavirus Stimulus Nullifies “How Will You Pay for It?” Question

Coronavirus pandemic: politicians, CEOs believe in MMT, Modern Monetary Theory

Coronavirus pandemic: politicians, CEOs believe in MMT, Modern Monetary Theory

The issue of “balancing the books” with taxes or via the issuance of debt is not only an afterthought — it is not even necessary. Our government holds a monopoly to “issue” the currency, it does not merely “use” it like the rest of us. An epochal shift in economic thinking that … Continue reading Coronavirus pandemic: politicians, CEOs believe in MMT, Modern Monetary Theory