The Importance of Budget Deficits

There's no likelihood of economies overheating, or in my view, inflation arising in the foreseeable future. There is nothing wrong with having budget deficits in the circumstances that need them. Governments of both persuasions have at times moved to implement very expansionary fiscal policy through budget deficits. So anything I say about this subject should not be interpreted as me arguing against budget deficits. It's simply me trying to explain to you the implications of how you finance a budget deficit.