A bit of ideological bias at work influencing view of causality, namely, that austerity is expansionary because saving funds investment?
I suppose that if Modern Monetary Theory (MMT) were implemented, foreign exchange markets would have their say about it (provided we still had floating exchange rates).
Do you think it is a coincidence that the two biggest bull markets correspond with government austerity? I do not.
And tell us what happened after the two biggest bull markets? MMT explains why.
Hint: The expansion was funded by unsustainable private debt that culminated in Ponzi finance as Hyman Minksy's finanical instability hypothesis would predict. MMT develops this explanation in terms of the crucial difference between a sovereign currency issuer and users of the currency that have to obtain it to meet obligations.
Hint: The expansion was funded by unsustainable private debt that culminated in Ponzi finance as Hyman Minksy's finanical instability hypothesis would predict. MMT develops this explanation in terms of the crucial difference between a sovereign currency issuer and users of the currency that have to obtain it to meet obligations.
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