Repairing economy after coronavirus crisis could require taking spending and taxing power away from government
ABCThe world is full of people who know better than you. Gruen said he hadn't made up his mind about MMT, but if a country wanted to dramatically increase the rate of money printing to finance deficit spending it would need an independent authority overseeing it. "And that is, when there's slack in the economy it's a rookie error to think of money as a scarce resource, because money is a costless fluid," he said. "According to MMT, the real constraint in the economy is not the cost of extra money in the system, like interest rate costs or something, but the constraints imposed by real resources, so eventually if there's too much money in the system there'll be too much money chasing too few goods, and you'll get inflation and that's bad. "If nothing else, MMT's quite a good marketing pitch for creating a Keynesian populist logic to counteract the austerian populist logic that encourage everyone to think that the government's going to go broke," he said.
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