The Government's Responsibility for Fiscal Deficits

The Recession Paradox | Alfonso Peccatiello

Forward Guidance

CHAPTER

The Government's Responsibility for Fiscal Deficits

Government can decide on a ledger, on the liability side, whether they want the net worth for the private sector to be higher or lower. So governments print money, do fiscal deficits, basically. And they inject bank accounts into Jack's private sector. The government paid that by having the Fed Reserve transfer reserves from the TGA to the private banks.

00:00

Transcript

Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.