Economic Reform Australia Blog

Federal government spending is different from household spending

It is not unusual to hear from politicians that government spending and household spending operate according to the same overall principles. This narrative usually states that households and governments must both "live within their means". And although many astute commentators recognise that … [Read more...]

Austerity is wrecking the global economy

In a recent article in the New York Times [1,2], economist Paul Krugman made the point that "the widespread demand for austerity serves a political agenda, with panic over the alleged risks of deficits providing an excuse for cuts in social spending". However considering the current state of the … [Read more...]

Differing viewpoints on the role of debt in the economy

The following appeared within an article in the Jul-Aug 2014 issue of the ERA Review The respective positions of the orthodox (neoclassical) and heterodox (mainly postKeyensian and MMT) viewpoints as they pertain to the role of debt in the modern economy differ profoundly, and may be summarised as … [Read more...]

Is MMT irreconcilable with NCT and Sovereign Money?

It is unfortunate that the advocates of MMT (modern monetary theory) and various monetary reform movements including  NCT (new currency theory) and Sovereign Money misunderstand each other’s positions. There are important truths in each viewpoint, and I do not see a necessary contradiction between … [Read more...]