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The size of public debt and deficits is not — as already Abba Lerner argued with his ‘functional finance’ theory in the 1940s — a policy objective. The size of public debt and deficits are what they are when we try to fulfil our basic economic objectives — full employment and price stability.Governments can spend whatever amount of money they want. That does not mean that MMT says they ought to — that’s something our politicians have to decide. No MMTer denies that too much of government spendings can be inflationary. What is questioned is that government deficits necessarily is inflationary.Lars P. Syll’s BlogMMT perspective on Biden’s .9-trillion big spendLars P. Syll | Professor, Malmo University
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The size of public debt and deficits is not — as already Abba Lerner argued with his ‘functional finance’ theory in the 1940s — a policy objective. The size of public debt and deficits are what they are when we try to fulfil our basic economic objectives — full employment and price stability.Governments can spend whatever amount of money they want. That does not mean that MMT says they ought to — that’s something our politicians have to decide. No MMTer denies that too much of government spendings can be inflationary. What is questioned is that government deficits necessarily is inflationary.Lars P. Syll’s BlogMMT perspective on Biden’s .9-trillion big spendLars P. Syll | Professor, Malmo University
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Mike Norman considers the following as important:
This could be interesting, too:
Lars Pålsson Syll writes DSGE models — a total waste of time
Lars Pålsson Syll writes Max von Sydow — non plus ultra
Peter Radford writes Lost opportunities?
Joel Eissenberg writes Oh, Elon!
The size of public debt and deficits is not — as already Abba Lerner argued with his ‘functional finance’ theory in the 1940s — a policy objective. The size of public debt and deficits are what they are when we try to fulfil our basic economic objectives — full employment and price stability.Governments can spend whatever amount of money they want. That does not mean that MMT says they ought to — that’s something our politicians have to decide. No MMTer denies that too much of government spendings can be inflationary. What is questioned is that government deficits necessarily is inflationary.
Lars P. Syll’s Blog
MMT perspective on Biden’s $1.9-trillion big spend
Lars P. Syll | Professor, Malmo University
MMT perspective on Biden’s $1.9-trillion big spend
Lars P. Syll | Professor, Malmo University