Академический Документы
Профессиональный Документы
Культура Документы
and
Unemployment
By Ken Schultz
Discussants: Bret Frank and Daniel Wendt
Debt, Deficits and
Unemployment
• Question Addressed
o Should the priority of the government’s
monetary and fiscal policy focus on debt
and deficit reduction or reducing
unemployment?
• Thesis Statement
o Additional government spending used
wisely to stimulate demand will reduce
unemployment and increase economic
growth without causing higher interest
rates, inflation or insolvency.
Outline
• Background
o Modern Money Theory
o Basic Principles of Macro Accounting
• University of Massachusetts Study about Debt
Ratio’s and Growth
• Misconceptions Concerning Deficit Spending and
Interest Rates
• The Reality of Hyperinflation
• The Job Guarantee/Employer of Last Resort
• Conclusion
Modern Money Theory
• Sovereign governments with a fiat money and
floating exchange rate have more monetary and
fiscal flexibility than they may recognize
• Governments have the ability to spend whatever is
required to revive their economies and restore
employment regardless of the amount of taxes
collected
• Governments can borrow without fear of default or
insolvency
• Affordability is not the issue, interest rates, inflation
and crowding out private investment .
Basics of Macro
Accounting
• One’s financial
asset is another’s
financial liability
• The Three Sector
Model
• Government
deficits are more
stable than private
sector deficits