Welcome to heteconomist: MMT and the Crisis

The global economic crisis and government policy responses to it have sparked controversy and debate. Many claim that the deficit expenditures undertaken in countries such as the US and Japan will necessitate higher tax rates and interest rates on future generations and result in the collapse of currencies and runaway inflation. The problems faced by Greece, Ireland, Spain and other vulnerable members of the European Monetary Union are interpreted as omens of the fate about to befall the US and other nations unless fiscal austerity is imposed and public debt dramatically reduced.

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