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RE: Coronavirus — Act like you CARE?

in #economy5 years ago

Regards dear @honeybee.

As for the origin of the funds and the creation of inorganic money, this is based on the implementation of the Modern Monetary Theory.

The MMT suggests that the fiscal deficit must be as high as necessary to maintain full employment.
The state will always be able to increase the internal debt as many times as necessary through the issuance of bonds, since it is possible to add other factors of internal production to the mathematical formula, and thus compensate for this "supposed" deficit.
In this way, maintaining employment can achieve greater production, increase GDP and thus compensate for debt.

Many times the surpluses of any sector of the economy are taken and channeled to compensate for the deficit of some other sector and of internal indebtedness.

On the other hand, there is the "humanitarian" character of these actions. Which could be reversed in the form of collective support in the upcoming presidential elections scheduled for November.

I only make assumptions.

Your friend, Juan.