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
Opinion
Opinion
Macroscope
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
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