Monthly Archives: December 2010

A simple business card economy

A simple budget game! Here is an example to help you think about all of this economic jargon. The concepts are simple and the numbers are small which makes it easy to understand and relate to (thanks to Warren Mosler … Continue reading

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Fiscal Sustainability 101 – Part 3d

Understanding why governments issue debt The fundamental principles that arise in a fiat monetary system are as follows. The central bank sets the short-term interest rate based on its policy aspirations. Government spending is independent of borrowing which the latter … Continue reading

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Fiscal Sustainability 101 – Part 3c

Understanding why governments tax In a fiat monetary system the currency has no intrinsic worth. Further the government has no intrinsic financial constraint. Once we realise that government spending is not revenue-constrained then we have to analyse the functions of … Continue reading

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