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Soft Currency Economics

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  • Warren Mosler
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    Abstract

    This evolutionary paper traces the interaction of monetary and fiscal policy, assuming lag reserve accounting in a fiat monetary system. It illustrates: Sovereign debt functions as interest rate support. Taxes function to create a demand for federal spending. The myth of the money multiplier. Taxed advantaged savings plans create a need for deficit spending. Exports are the cost of imports.

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    File URL: http://128.118.178.162/eps/mac/papers/9502/9502007.txt
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    Bibliographic Info

    Paper provided by EconWPA in its series Macroeconomics with number 9502007.

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    Date of creation: 14 Feb 1995
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    Handle: RePEc:wpa:wuwpma:9502007

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    Web page: http://128.118.178.162

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