Credit Writedowns Sat 2010-05-22 20:58 EDT

MMT: Economics 101 on government budget deficits

...when the government has a deficit in any period, by definition the non-government sector (foreign plus private) must have a surplus of exactly the same amount...I haven't talked about government as the creator of currency and the private sector as the user of currency. I haven't focused on any misallocation of resource or malinvestment issues. I haven't raised the spectre of inflation or currency depreciation. I have simply presented the economics and accounting of budget deficits...

credit writedowns; Economics 101; governments Budget Deficit; MMT.