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Bijou's avatar

#2 what is "deficit spending"? It is nonsense. You cannot spend a deficit. You cannot spend by having a deficit, nor by not having a deficit. Governments running MMT systems (most of them) spend in one and only one way, by instructing their central bank to mark up bank accounts, using a computer. No deficit is involved.

The government surplus/deficit is an accounting residual you only know at the end of an accounting period. If full employment has been achieved no one should care what the number is, positive or negative. That they *do* care is a cause of massive economic misery for the poor.

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Bijou's avatar

Needs a bit of editing: e.g, #1

"It postulates that all economic policy can be conducted with deficit spending. "

not really. You've got to drive demand for the 'otherwise worthless' currency, so at an absolute bare minimum MMT tells you you've got to tax or impose fines or something, in the currency only you (Gov) can issue, or lend via agent commercial banks (chartered by the state). So it is Fiscal Policy that achieves monetary economic goals, and no other goals per se (real production is the aim, but via rampant corruption and rentiers not always realised).

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