Labor think tank goes full MMT

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Think thank Per Capita argues in a new report that concerns over how the federal government’s COVID-19 measures will be paid for are “largely misplaced”.

Per Capita contends that the government can essentially roll over its debt indefinitely, so long as Australia’s productive capacity operates to its maximum potential and its economic activity continues.

Per Capita instead contends that governments should borrow even more money to stimulate economic activity and protect employment.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.