> Probably dumb question: if debt and deficits don’t matter and a country can just print money - how does that explain cases where countries have defaulted and other countries and their own citizens lose confidence in the currency?
I think the idea is that deficits don't matter if you print money and offset any inflation (1) some sort of jobs program, (2) taxes which can take money back out of the economy and cool inflation, and maybe (3) more traditional ways of tweaking interest rates.
I think the idea is that deficits don't matter if you print money and offset any inflation (1) some sort of jobs program, (2) taxes which can take money back out of the economy and cool inflation, and maybe (3) more traditional ways of tweaking interest rates.