Is MMT Real? #4: J.W. Mason
RABBITHOLE
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The Real Resource Constraints of a Bond Rating
If Detroit gets a large portion of its revenue through property taxes for example and the properties in Detroit are just worth like so so so so little there just might but that's not be enough money we have to be careful on this real resource constraints. You can if you need school teachers you just start paying and people start moving right though I actually school teachers is a bad example because some places really do like struggle with just recruiting teachers. If it borrows too many dollars then it it might not be able to pay them back yes and that's default and that's what a bond rating as I assume is our prediction on if you're gonna pay back right so you don't know how much
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