Tag Archives: Deficit Spending 101

Money is No Object

Money is No Object

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The Myth of Crowding Out

This is the final blog post of the Deficit Spending 101 series, it immediately follows the Central Bank Role blog. We now know that it is a myth to perpetuate the idea that a currency-issuing government is financially constrained. This … Continue reading

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Central Bank Role

This blog follows directly from “Deficit Spending 101 – Part 3”. The central bank operations aim to manage the liquidity in the  banking system such that short-term interest rates match the official  targets which define the current monetary policy stance. … Continue reading

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Deficit Spending 101 – Part 3

This is Part 3 in Deficits 101, which is a series I am writing to help explain why we should not fear deficits. In this blog we consider the impacts on budget deficits on the banking system to dispel the … Continue reading

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Deficit Spending 101 – Part 2

This post follows directly from “What the Government Budget Constraint (GBC) means.” In summary, we conclude from the above analysis that governments spend (introduce net financial assets into the economy) by crediting bank accounts in addition to issuing cheques or … Continue reading

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