3 ms·
this seems like the wrong direction. I'd prefer to get rid of the Fed. No reason for the Federal Govt to borrow money it can print itself. Opening up what it me
by abfan1127 6y ago
this seems like the wrong direction. I'd prefer to get rid of the Fed. No reason for the Federal Govt to borrow money it can print itself. Opening up what it means to be a bank makes sense though.
- tastyfreeze 6y agoI agree with you on getting rid of the Fed. Borrow money from future generations to print today's money. Totally not ever going to be a problem, I plomise. ;)
- smabie 6y agoSimply printing money only expands the monetary supply, it can never contract it. Government bonds on the other hand have the nice property that they can be used to contract the money supply (by selling bonds) or expand it (by buying back bonds). Also, modern financial theory is predicated on a nominally positive risk free rate. If the nominal time value of money is strictly zero, a lot of things start to break down.
- jcbrand 6y agoAccording to my understanding of MMT, you'd use taxes to shrink the money supply. Also, risk free interest rates are negative in Europe, let alone zero.