Freshly printed US$20 notes are processed for bundling and packaging at the US Treasury's Bureau of Engraving and Printing in Washington, DC, in July 2018. Independent central banks provide a check on governments’ money creation. Photo: AFP
Anthony Rowley
Opinion

Opinion

Macroscope by Anthony Rowley

Unlimited government spending? Modern monetary theory is a seductive but dangerous idea

  • As recession looms and monetary easing options dwindle, the theory that governments can ‘borrow from themselves’ to finance unlimited spending is becoming attractive. But it hinges on complicit central banks buying up government debt

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Freshly printed US$20 notes are processed for bundling and packaging at the US Treasury's Bureau of Engraving and Printing in Washington, DC, in July 2018. Independent central banks provide a check on governments’ money creation. Photo: AFP
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