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SOFT CURRENCY ECONOMICS by Warren Mosler
The purpose of this work is to clearly demonstrate, through pure force of logic, that much of the public debate on many of today's economic issues is invalid, often going so far as to confuse costs with benefits. This is not an effort to change the financial system. It is an effort to provide insight into the fiat monetary system, a very effective system that is currently in place.
The validity of the current thinking about the federal budget deficit and the federal debt will be challenged in a way that supersedes both the hawks and the doves. Once we realize that the deficit can present no financial risk, it will be evident that spending programs should be evaluated on their real economic benefits, and weighed against their real economic costs. Similarly, a meaningful analysis of tax changes evaluates their impact on the economy, not the impact on the deficit. It will also be shown that taxed advantaged savings incentives are creating a need for deficit spending.
The discussion will begin with an explanation of fiat money, and outline key elements of the operation of the banking system.
PDF -http://moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2019/10/35432615-Soft-Currency-Economics.pdf
The purpose of this work is to clearly demonstrate, through pure force of logic, that much of the public debate on many of today's economic issues is invalid, often going so far as to confuse costs with benefits. This is not an effort to change the financial system. It is an effort to provide insight into the fiat monetary system, a very effective system that is currently in place.
The validity of the current thinking about the federal budget deficit and the federal debt will be challenged in a way that supersedes both the hawks and the doves. Once we realize that the deficit can present no financial risk, it will be evident that spending programs should be evaluated on their real economic benefits, and weighed against their real economic costs. Similarly, a meaningful analysis of tax changes evaluates their impact on the economy, not the impact on the deficit. It will also be shown that taxed advantaged savings incentives are creating a need for deficit spending.
The discussion will begin with an explanation of fiat money, and outline key elements of the operation of the banking system.
PDF -http://moslereconomics-kg5winhhtut.stackpathdns.com/wp-content/uploads/2019/10/35432615-Soft-Currency-Economics.pdf
