this post was submitted on 11 Jul 2023
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Economics

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[–] [email protected] 2 points 1 year ago (1 children)

that's how they control inflation - by killing the economy, increasing unemployment, thus disciplining labour and suppressing wage increases and consumer demand. Instead of govt spending on programs, it gives money to bondholders, who hoard it until interest rates come down.

Australia has leading scholars on MMT, which explains exactly what is going on, a very different story than you'll hear in the Murdoch media.

[–] [email protected] 2 points 1 year ago

I'd be really interested to see policies based on MMT in practice.

[–] bernieecclestoned 1 points 1 year ago* (last edited 1 year ago)

It will kill inflation, reducing the amount of borrowing by raising the cost will reduce business investment

Central banks want to see more unemployment and reduced spending by consumers with disinflation as a result

UK and US both have elections next year, so they'll want to be able to drop rates fast and juice the economy in time