![]() To truly enjoy the benefits of the Modern Monetary Theory, the government must have monetary sovereignty. In fact, the situation is more complicated since the countries need to do more than just grant themselves the exclusive right to issue currency. In contrast, the issuer of a currency does not have such restrictions and does not have to worry about revenues when deciding which projects to fund. Currency users have to worry about financing costs since they need to borrow money. The author may end up convincing a large number of readers that the Modern Monetary Theory can turn unaffordable loans into smart investments by simply changing the way the government thinks about them.Īccording to Kelton, countries with monetary sovereignty do not need to manage their budgets the way a family does. ![]() This is a dangerous message that Kelton tries to infuse into American discourse. If too much money will be printed, the country will get high inflation, but it doesn’t have to worry about finding the money the way a family or business does. Kelton says that since the Federal Reserve has the legal ability to print unlimited money, people should stop worrying about how the government will pay for various spending programs. ![]()
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