deficit

By Warren Mosler Back in November my forecast for 2013 was 4%, which at the time was by far the highest around. The govt was spending more than its income by about 6% of GDP, which was about $900 billion if I recall correctly. But then it…

People want to see tight fiscal policy and loose monetary policy if stimulus is necessary. That is current policy orthodoxy and it will continue to be the case until at least the next cyclical downturn. If policy makers can ride out this…

"Not all government debt is created equal. We have bad deficits and good deficits. Good deficits are used to fund investments that will have a positive rate of return, properly determined. Those contribute to GDP."

Deficits present governments with the sole challenge of making good on future promises without inflation. For nations sovereign in currency, the constraint is inflation, not solvency.

This is an article that originally ran early this month at VoxEU by the Chief Economist of the International Monetary Fund and one of his researchers that make the case now being used in Europe for the current policy mix.

The first thing that jumps out at me is the interview with Marco Buti, who says point blank that austerity must end as it is "pointless". That's huge because he is Olli Rehn's right hand man. And Rehn has just confirmed that the EC is…

I have been trying to break up the links posts because I have so many. So I have been writing brief theme posts to go with the links as I used to do when I had more time. I want to make this one short here and I have two topics to…

I was on the Daily Ticker with Lauren Lyster talking about Japan yesterday. My view is that there is no material negative change in Japan's sovereign debt outlook nor will there be in the medium term because of Abenomics. The video is at…

UMKC Economics head Stephanie Kelton was on Chris Hayes' show to talk about US fiscal politics along with three other guests. They discuss the political gridlock in the US and what it means for the economy.

Well, well, well, it seems we have a problem in Euroland. The Dutch have now confirmed what I have been saying all along: they have run into so many fiscal problems that they will need to relax their targets instead of doubling down on…