MMP Blog #26 Responses
Comments and responses on the Modern Money Primer Part 26.
Day: December 21, 2023
MMP Blog #26: Sovereign Currency and Government Policy in the Open Economy
A country that floats its exchange rate can enjoy domestic policy independence and free capital flows. A country that pegs its exchange rate must choose to regulate capital flows or must abandon domestic policy independence.
MMP Blog #25: Currency Solvency and the Special Case of the US Dollar
We will look to the frequent claim that the US is “special”—while it might be able to run persistent government deficits and trade deficits, other countries cannot.
MMP Blog #24: What if Foreigners Hold Government Bonds?
When government deficit spends, some of the claims on government will end up in the hands of foreigners. Does this matter? Yes, according to many.
MMP Blog #23: The Debate About Debt Limits (US Case)
We should not be fooled by such self-imposed constraints. We should be able to see through them to understand that since they are imposed by government on itself, they can be removed.
