Bill Mitchell — Twin Deficits and Sustainability Of Budget Deficits – Part 2

I am now using Friday’s blog space to provide draft versions of the Modern Monetary Theory textbook that I am writing with my colleague and friend Randy Wray. We expect to publish the text sometime early in 2014. Comments are always welcome. Remember this is a textbook aimed at undergraduate students and so the writing will be different from my usual blog free-for-all. Note also that the text I post is just the work I am doing by way of the first draft so the material posted will not represent the complete text. Further it will change once the two of us have edited it.

Today continues the material that appeared in:

▪ Twin Deficits and Sustainability Of Budget Deficits – Part 1

Chapter 25 Recent Policy Debates

In this Chapter we consider the following policy debates:
▪ 25.1: Ageing, Social Security, and the Intergenerational Debate
▪ 25.2: Twin Deficits and Sustainability Of Budget Deficits
▪ 25.3: Fixed Versus Flexible Exchange Rates: Optimal Currency Areas, the Bancor, or Floating Rates?
▪ 25.4: Economic Growth: Demand or Supply Constrained?
▪ 25.5: Environmental Sustainability and Economic Growth

25.2 The twin deficits hypothesis

Bill Mitchell – billy blog
Twin Deficits and Sustainability Of Budget Deficits – Part 2
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the Charles Darwin University, Northern Territory, Australia