In my last blog, I introduced the basics of Modern Monetary Theory (MMT). While looking through my drafts folder tonight, I found this table I’d copied from this blog post by Bill Mitchell. It gives some commonly heard macroeconomic propositions, and gives an alternative MMT view on each proposition. It’s quite a succinct summary of how a lot of the things to do with the economy that are often stated as fact, are certainly arguable at best, and at worst, are total nonsense.

Mainstream macroeconomicsModern Monetary Theory
Budget deficits are badBudget deficits are neither good nor bad and are required where the spending intentions of the non-government sector are insufficient to ensure full utilisation of available productive resources.
Budget surpluses are goodBudget surpluses are neither good nor bad and may be harmful in some circumstances if they involve a drag on growth in situations where there are idle…

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