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2020-07-24

A profound shift is now taking place in economics as a result, of the sort that happens only once in a generation.

Budget constraints have gone missing. That presents both danger and opportunity

This new epoch has four defining features. 

The first is the jaw-dropping scale of today’s government borrowing

The second feature is the whirring of the printing presses.

The third aspect of the new age. Together the Fed and Treasury are now backstopping 11% of America’s entire stock of business debt.

The final feature is the most important: Low inflation is the fundamental reason not to worry about public debt

Yet the new era also presents grave risks. If inflation jumps unexpectedly the entire edifice of debt will shake

The Economist 23 July 2020

See also: https://www.economist.com/briefing/2020/07/25/the-covid-19-pandemic-is-forcing-a-rethink-in-macroeconomics


Stephanie Kelton - en av mina Gurus
The Deficit Myth:  Modern Monetary Theory

Englund 2020-07-19









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