The MMT Podcast with Patricia Pino & Christian Reilly cover image

#126 Dirk Ehnts: How Banks Create Money

The MMT Podcast with Patricia Pino & Christian Reilly

CHAPTER

Is There a Current Account Deficit?

A country is not an active and therefore cannot have net inflows or outflows. Only residents can experience such changes in wealth. Many new constrome economists are waking up to the fact that this is how it works. So if you talk about the currint account surplus and you want to recycle that, or you want to spend thet time somehow on something, there's no way you can do it. I mean, its money belongs to exporting company, and there's nothing you can do about it.

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