The public purpose is an evolving concept. The national government must play an important role in society as it helps to identify the social purpose and to establish a social structure in which individuals and groups will work toward achieving the public purpose.
I will be making policy recommendations that are consistent with MMT. You do not have to like mine; you can come up with your own.
Let’s finish up the discussion of Lerner’s functional finance approach addressing two issues: functional finance and developing nations and also the functional finance approach to trade deficits.
The US Dollar probably will not remain the world’s reserve currency. From the US perspective, that might be a disappointment. In the long view of history, it is inconsequential.
Applying a household “budget constraint” to government is obviously inappropriate—households are users of the currency, while government is the issuer. How could economics have become so confused?
