Wednesday, January 23, 2013

MMT And The Sustainability Of Sovereign Deficits And Debt

This is the fourth part of the series on sovereign deficits and debt. (Last week I erred in identifying the post as the third part in the series on math sustainability—it was the third part of the whole series but only the second piece on math sustainability; in a sense, this is the third part of the math series.) The series was started in response to my Economonitor Ed Dolan’s original post detailing agreements and possible disagreements with the MMT approach.
Economonitor | Great Leap Forward
MMT And The Sustainability Of Sovereign Deficits And Debt
L. Randall Wray | Professor of Economics, UMKC


Anonymous said...

Sovereign deficits are certainly desirable since that is where new government money comes from but borrowing by the monetary sovereign is not only absurd but it creates a rentier class who actually profit from deflation in the government's money since it increases the real return on sovereign debt without increasing the risk of default since there can be no risk of default by a monetary sovereign.

googleheim said...

germany rents it's precision machine production

greece rents it's kleptocratic insolence

argentina rents it's soybeans

china rents it's cheap labor

brazil rents it's chopping of rain forrests

canada is going to rent it's sludge

italy rents it's vegetables

it is all about the rents for sure

googleheim said...

and the usa rents it's U$D as a reserve currency

as per wiki definition of rentier system