A Mathematical Model Of Modern Monetary Operations – 2: Simulating MMT — Steve Keen

Summary:
The previous post finished with the observation that, since the sum of all Equity is zero, and the banking sector must be in positive equity, part of the remainder of the economy - the government, or the non-bank public - must be in negative equity. So which sector is better equipped to handle that: the non-bank public, or the government?… In the next post, I'll consider what the impact is of different fiscal regimes: the government running a deficit (as the USA has for most of the last 120 years - roughly of 2.5% of GDP); the government running a surplus; the government running a surplus and the private sector borrowing from the Banking Sector; the government running a surplus and the private sector reducing its debt to the Banking Sector; and the government running a deficit while the

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