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Stephanie Kelton
StephanieKelton
Let’s play the “pay for” game. Suppose you want to spend $3-$10 trillion on a Build Back Better agenda. You’ve decided that you’re going to play the “pay for” game,
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Yesterday, @jasonfurman tweeted out my NYT piece on the Biden infrastructure proposal. He claimed I had ignored the most obvious way to deal with any inflationary pressures that might arise—i.e.
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I promise to stop when the battle is won. Until then, here’s another attempt to improve understanding and shift our broken thinking about government “deficits.”THREAD First, the word deficit. It’s
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A thread (1/21)Let's talk about the "deficit" that isn't. The conventional way to talk about the government's fiscal position is to look at the difference between how much money the
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If MMTers were just doing standard Keynesian macro, then we would not have arrived at completely different conclusions (from mainstream Keynesians) re: the Bush tax cuts, the Clinton surpluses, the
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Happy to sit down with the Treasury Secretary and show him how to run deficits without debt. I’ll clear my calendar. Also, Chapter 4 is entitled, “The National Debt (That
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THREADWhat if, instead of tolerating a huge spike in joblessness, the government just made it (nearly) impossible for employers to lay off workers while the economy is “turned off”? According
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THREADI don’t know who needs to hear this, but the federal government’s fiscal capacity is robust *across* time. State & local government budgets, on-the-other-hand, are necessarily pro-cyclical. 1/5 That’s because
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THREAD Throughout the primary debates, Democrats missed a huge opportunity to talk with people about what it means to "pay for" your spending proposals. Now that Congress is preparing to
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How I see it:We have Covert Monetary Financing (CMF) now.Primary dealers take up all newly-issued Treasuries, and the Fed backstops primary dealers. Ergo, the Fed is *already* directly coordinating with
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THREADWhat Bailey fails to understand is that what he is calling "printing money" is not more inflationary than running bond sales the way we do now. In fact, the opposite
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