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

State and local government stimulus needed to avoid long-term drag

State and local government stimulus needed to avoid long-term drag

Budget shortfalls threaten additional job cuts, gutted social programs, and can cripple states’ abilities to conduct coronavirus vaccination programs. The time for government to do something is now. Check out how other countries are handling the pandemic: Wages subsidized by the government during pandemic: 🇨🇦 – $2,000 a month 🇯🇵 – Up … Continue reading State and local government stimulus needed to avoid long-term drag

Britain is becoming a GoFundMe nation, with the public doing the government's job

Britain is becoming a GoFundMe nation, with the public doing the government’s job

By all means step in to feed children or raise money for the NHS, but never forget that the Tories’ aim is to shrink the state, says the Guardian columnist Nesrine Malik Becoming like the United States, in other words. Source: Britain is becoming a GoFundMe nation, with the public doing the … Continue reading Britain is becoming a GoFundMe nation, with the public doing the government’s job

U.S. government debt will nearly equal the size of the entire economy for first time since World War II, CBO finds - The Washington Post

U.S. government debt will nearly equal the size of the entire economy for first time since World War II, CBO finds – The Washington Post

The CBO projected that the deficit will be the biggest this year as a share of the economy since 1945. And it means absolutely nothing. In fact the government needs to increase the deficit even more if it wants to avoid a massive, potentially decade long, recession. Source: U.S. government debt will … Continue reading U.S. government debt will nearly equal the size of the entire economy for first time since World War II, CBO finds – The Washington Post

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