This report examines the underlying principles of government finance for a central government with a free-floating currency.This is done by examining financial operations within a simplified yet realistic monetary framework. Then the effect of deviations from this framework by real world governments are discussed. What is demonstrated is that we cannot compare such a government to a household. Unlike a household, governments are not bound by purely financial constraints, nor is there any need to pay down its debt.Bond Economics
This report is aimed at a relatively wide audience that has an interest in finance and economics. The focus is on the operations behind government finance, and so there is limited discussion of economic theory. However, the analysis is within the tradition of Modern Monetary Theory (MMT), and so it provides an introduction to some of the concepts used within that body of thought.
eReport: Understanding Government Finance
Brian Romanchuk
Also
No comments:
Post a Comment