A giant end-of-month spending spree in August has ballooned the Federal defiicit to $980 bln and 4.8% of GDP.This is the largest nominal deficit since 2009 and the largest as a percentage of GDP since 2012.The MMT gods should be cheering this. They're not. Weird.
Read More »Money creation and sight deposits may have two points of view: 1. The central bank creates money - i.e. the SNB decides to increase sight deposits when it does currency interventions 2. Commercial banks create money - inflows in CHF on Swiss bank accounts make those banks increase their "sight deposits at the SNB. If inflows in CHF are higher than outflows then CHF must rise, unless the central bank does currency interventions. We will present both alternatives.
Read More »
Heterodox
