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Functional finance and the federal debt: Abba P. Lerner – Editor

This classic paper [1] deals, in a logical and satisfactory manner, with those objections to deficit spending (deficit financing) by a central and sovereign government which are often expressed by orthodox economists. Abba Lerner’s arguments in this direction constitute one of the major pillars of modern monetary theory, along with Knapp’s state theory of money.

1. Social Research, v10, n1 (Feb 1943), pp 38-51. Published by The New School

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