 ConclusionsA chapter in Modern Money Theory, 2012, pp 282-282 from Palgrave Macmillan Abstract: Abstract In this Primer we have explored the macro identities as well as the stock-flow implications that are necessary to formulate policy for any sovereign nation, including developing nations. We carefully examined operational realities for a nation that adopts a sovereign currency. We have also explored the constraints imposed by different currency regimes on domestic policy formation. We concluded that floating a currency, even if it is a managed float, opens up more domestic policy space. Still, even in the context of a developing nation operating with a pegged currency, the space available to the issuer of the currency (the sovereign government) is almost certainly greater than what is generally recognized. Understanding how a currency issuer spends and taxes, and why a currency issuer sells bonds, helps to expand policy options under all exchange rate regimes. That led us to the functional finance approach that argues that government should use its budget to achieve what it perceives to be in the public purpose. Importantly, government should promote full employment with price stability. We analyzed one possible program that could be used to achieve that goal: the job guarantee or employer of last resort program. Finally, we examined the “nature” of money. Date: 2012 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-26514-2_9 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.