The transition from trading fish and coconuts to using recognizable modern currency happens quickly, but don’t despair if you’re feeling macroeconomically challenged! This book is written for regular folks who are interested in learning how an economy with a sovereign fiat currency works without having to attend a university program to get there.
One issue that was not discussed in the previous article regarding fiscal policy relates to the timing of fiscal policy. Since Congress authorizes spending, a criticism of fiscal policy has been that it may not be quickly responsive to economic problems. However, this concern is ameliorated by the fact that we have implemented various policies that are designed to vary with economic conditions.
A timeline of the monetization of our country; the impetus of the national debt, and how various state and federal banking systems, with Congress’ help, shaped our country’s economics through bank creations, conclusions, failures, and rebirths; from the founding of our nation, to the Nixon Shock ending the literal meaning of the national debt, and giving us what today is often called Modern Monetary Theory.