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Carney writes:> Joe Weisenthal at Business Insider thinks that this resemblance is an illusion. Japan, he argues, is not going bust. Bass’ logic is “badly flawed,” he writes. As a result, the Japanese trade is “never going to pay off for him.”This Weisenthal guy sounds MMTish. Is he a "known" MMTer?
Reading Carney it seems that an additional qualifier (or maybe a higher level of?) to be a "monetary sovereign" is the desirability of the issuer nation’s currency outside its own borders. Otherwise it would need to *use* / fund itself in FCY to import what it can't produce locally. Am I missing something here?Also, given that most commodities are priced in USD isn't every nation effectively in this position, expect the US?
Just means that there are limits on the sovereign. As Randy Wray says, the government has to watch inflation rate and exchange rate. A currency sovereign has more policy space than a nation that is not, but it doesn't have unlimited policy space. The general has to be interpreted wrt specific instances and conditions.
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