I liked this article in the Guardian today about nation states and money. (In particular the UK and Covid relief debt).

I often argue that governments and nation states do not have to "balance the books" like I do with my income and outgoings. But this article explains much more coherently.

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@kat The article is mostly based on Modern Monetary Theory (#MMT), with some of the usual mainstream macro mistakes thrown in (eg. government borrowing does not - indeed cannot - "finance" anything, as the article claims it does. Every time the UK government spends, new pounds are created. Offering to exchange non-interest-bearing pounds for interest-bearing bonds is mainly just corporate welfare. It has no effect on the government's ability to spend.)

A white paper that came out last month on understanding MMT in the context of the UK is a better summary, but each of the points requires quite a bit of subsequent unpacking:…

I recommend anything by Stephanie Kelton:……
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