Government Budgeting in the Context of COVID

The chapter explores the shift in thinking about government budgeting during the COVID pandemic, discussing the cultural views on deficits in Europe and the concept of debt-to-GDP ratio. It also examines the focus of Modern Monetary Theory (MMT) on inflation and supply constraints, and raises the question of whether MMT should include more consideration of supply push inflation. The speakers highlight the importance of being prepared for factors that can potentially cause inflation and emphasize the need for long-term planning and economic resilience.