Modern monetary theory (MMT) explained - Economics Help
https://www.economicshelp.org/blog/162341/economics/modern-monetary-theory-mmt-explained/
Mmt View on Monetary PolicyMmt View on Government BorrowingCrowding Out/Crowding inA traditional critique of government borrowing is that if the government borrow, it deprives the private sector of funds for investment – therefore, government borrowing – crowds out the private sector. However, MMT say if the economy has spare capacity, then government borrowing is not reducing private sector spending, but the reverse can happen. ...See more on economicshelp.orgEstimated Reading Time: 7 mins A traditional critique of government borrowing is that if the government borrow, it deprives the private sector of funds for investment – therefore, government borrowing – crowds out the private sector. However, MMT say if the economy has spare capacity, then government borrowing is not reducing private sector spending, but the reverse can happen. ...
A traditional critique of government borrowing is that if the government borrow, it deprives the private sector of funds for investment – therefore, government borrowing – crowds out the private sector. However, MMT say if the economy has spare capacity, then government borrowing is not reducing private sector spending, but the reverse can happen. ...
DA: 1 PA: 65 MOZ Rank: 2