![]() ![]() As Kelton puts it, government spending creates the money which can then be reclaimed through taxes and borrowing, not the other way around. The only thing a finance ministry or central bank needs is the right keyboard sequence for increasing the electronic balance in the government’s bank accounts. Old-fashioned talk about governments needing to find the money they spend is confused. ![]() The first part of the argument is powerful. It’s time to stop when inflation rates get close to uncomfortable levels. How can we tell when that point is reached? Simple, says MMT. Since a government that can issue money cannot run out of the stuff, it should spend as much as is needed to ensure that the country’s available economic resources are used as fully as possible. The basic argument of “The Deficit Myth” is simple and strong. Her fervent evangelism helped turn the theory’s core premise, that there is nothing inherently dangerous about fiscal deficits, into a central belief of progressive politics in the United States and increasingly around the world. ![]() The Stony Brook University professor has advised Senator Bernie Sanders, the American left-wing presidential candidate. Kelton deserves much credit for MMT’s newfound respectability. A New Zealand ten dollar note sits underneath a United States one dollar bill in the window of a currency exchange teller in Sydney, Australia, March 10, 2016. ![]()
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