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View Diary: NYT: It's Krugman Vs. Reinhart & Rogoff, Who Trivialize Their Incompetence And Attack “Left” (246 comments)

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  •  MMT (1+ / 0-)
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    accepts that countries will run deficits, issue bonds, etc. See here. What is being expressed here is something completely different. Apparently, hannah and Jim P believe there is an obligation for governments to finance their spending above what they take in from tax revenues only by issuing new currency. The proponents of MMT make no such claim. It is one thing to say that a nation that uses fiat currency can never be insolvent because it can always issue more money. It is quite another to say that that same nation should never run a budget deficit because it should always issue more money to finance its expenditures (above what it takes in from tax revenues).  

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