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Running a budget surplus doesn't mean that money is destroyed. Also, the claim that the Euro-zone needs deficits is a highly contentious point, and not at all o
by tedsanders 10y ago
Running a budget surplus doesn't mean that money is destroyed. Also, the claim that the Euro-zone needs deficits is a highly contentious point, and not at all obvious or a consensus. Asserting it rather than arguing it does a disservice to the subtleties.
- RobertoG 10y ago"Running a budget surplus doesn't mean that money is destroyed." What it means, then?
- tedsanders 10y agoIt means the government takes in more money than it spends. Depending on the policy of the Fed (or other issuer of fiat currency), the money supply may be increasing or decreasing at the same time.
- RobertoG 10y agoSorry, you are right. I forgot that the central bank in the States is not part of 'the government'. The 'other issue of fiat currency' sounds mysterious.