Do Bond Sales & Borrowing Finance US Deficit Spending?
Professor L. Randall Wray responds to this question and debunks the misunderstandings and fallacies surrounding it.
Monetary Sovereignty
MMP Blog #35: Functional Finance: A Conclusion
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.
MMP Blog #27: What about a country that adopts a foreign currency? Part One
A country might choose to use a foreign currency for domestic policy purposes. Here, however, we are examining a nation that does not issue a currency at all.
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 #20: Effects of Sovereign Government Budget Deficits on Saving, Reserves and Interest Rates, (continued)
There are often two objections to the claim that government spending effectively takes place by simultaneously crediting the recipient’s bank account as well as the bank’s reserves.
MMP Blog #19: Effects of Sovereign Government Budget Deficits on Saving, Reserves and Interest Rates
Let us now begin to examine in more detail the government’s budget and impacts on the nongovernment sector.
