Economic Reform Australia Blog

A Government Surplus is a Private Sector Deficit

It is well known in economics that the net sum of private, public and foreign sector balances is zero. Thus if the foreign sector is equally balanced by imports and exports, then a federal government deficit implies a private sector surplus. Likewise if the government aims to go into surplus, it … [Read more...]

Aspects of modern monetary theory

        Following the advent of the global economic crisis, there has been a growing recognition and understanding of the claims made by a relatively recent school of economic thought known as Modern Monetary Theory (MMT), which is a development of what used to be called Chartalism.  Considering … [Read more...]

Selling Australia’s Resources

It's accepted that oil and minerals in the ground are owned by Australians. So how do we transfer ownership to mining companies? "Gifting" them and then applying taxation and royalties is, as we will see below, a poor commercial practice that is now creating problems with public disclosure and … [Read more...]

Where does money come from?

In this electronic age, money virtually comes from nowhere. If you happen to be a currency-issuing central government – that is, a central government that owns and issues the nation’s currency – you can always find the money required to make purchases. You and I can get hold of money, but we have to … [Read more...]