by Summary:
The received wisdom on government debt is that it saddles future generations with the burden of repayment. The received wisdom is wrong. As long as a government’s debt is denominated in its own currency, repayment is never a problem. Why? Because the government can always create the necessary funds. A sovereign government’s debt is one source of a country’s currency. National governments literally spend money into existence. Deficits can cause problems, but to properly understand those problems, we have to understand the role that government finance plays in a country’s monetary system.... The ConservationHow government deficits fund private savings D.T. Cochrane | Lecturer in Business and Society, York University, Canada
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Mike Norman considers the following as important: MMT
This could be interesting, too:
The received wisdom on government debt is that it saddles future generations with the burden of repayment. The received wisdom is wrong. As long as a government’s debt is denominated in its own currency, repayment is never a problem. Why? Because the government can always create the necessary funds. A sovereign government’s debt is one source of a country’s currency. National governments literally spend money into existence. Deficits can cause problems, but to properly understand those problems, we have to understand the role that government finance plays in a country’s monetary system.... The ConservationHow government deficits fund private savings D.T. Cochrane | Lecturer in Business and Society, York University, Canada
Topics:
Mike Norman considers the following as important: MMT
This could be interesting, too:
Mike Norman writes Jared Bernstein, total idiot. You have to see this to believe it.
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The received wisdom on government debt is that it saddles future generations with the burden of repayment. The received wisdom is wrong. As long as a government’s debt is denominated in its own currency, repayment is never a problem. Why? Because the government can always create the necessary funds.
A sovereign government’s debt is one source of a country’s currency. National governments literally spend money into existence.
Deficits can cause problems, but to properly understand those problems, we have to understand the role that government finance plays in a country’s monetary system....The Conservation
How government deficits fund private savings
D.T. Cochrane | Lecturer in Business and Society, York University, Canada