▲ 9 r/mmt_economics
Response to something rothbard said
Apparently Rothbard seid something like, there are 3 ways a state can pay for something:
- taxation
- borrowing
- printing
Mosler says that point 3 and point 1 are actually the same since bonds are a form of money.
Treasuries, gilts, ect function as zero risk financial assets, and can be converted into cash at the inter Bank lending market in the first instance, and in the second instance by standing facilities at the CB.
Thus however it spends, the gov creates money. the difference between printing and borrowing is then purely a monetary operation.
context is from this debate
u/SameAgainTheSecond — 4 days ago