Do Bond Sales & Borrowing Finance US Deficit Spending?
Professor L. Randall Wray responds to this question and debunks the misunderstandings and fallacies surrounding it.
China
MMP Blog #34: Functional Finance and Exchange Rate Regimes: The Twin Deficits Debate
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.
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 #21: Government Budget Deficits and the “Two-Step” Process of Saving
It is best to think of the net saving of the nongovernment sector as a consequence of the government’s deficit spending—which creates income and savings.