Who is Afraid of the Big Bad Debt? A Modern Money Theory Perspective on Federal Deficits and Debt
The U.S. federal government's deficit is expected to grow to over one trillion dollars in fiscal year (FY) 2020, and the national debt held by the public will likely grow to over $16.7 trillion. Budgeting scholars in the field of public administration have expressed concern over the increasing...
Saved in:
Published in | Public budgeting & finance Vol. 40; no. 3; pp. 6 - 25 |
---|---|
Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Malden
Blackwell Publishing Ltd
01.09.2020
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | The U.S. federal government's deficit is expected to grow to over one trillion dollars in fiscal year (FY) 2020, and the national debt held by the public will likely grow to over $16.7 trillion. Budgeting scholars in the field of public administration have expressed concern over the increasing debt levels. The field of public administration, however, is largely unaware of Modern Money Theory (MMT) and the mechanics of money, which is its focus. MMT argues that understanding the mechanics of money in the U.S. financial system should lead scholars to different conclusions regarding the debt and deficit. This article presents the core arguments of the MMT perspective in this regard, with the goal to trigger further debates about debt and deficit among the community of budgeting scholars. |
---|---|
Bibliography: | jwdougla@uncc.edu James W. Douglas is at the Department of Political Science & Public Administration, the University of North Carolina at Charlotte, 9201 University City Blvd., Charlotte, NC 28223. He can be reached at . Ringa Raudla is at Tallinn University of Technology, Ragnar Nurkse Department of Innovation & Governance, Tallinn, Estonia. |
ISSN: | 0275-1100 1540-5850 |
DOI: | 10.1111/pbaf.12247 |