Australian budget Australian interest rates

Depressionberg condemns MMT as RBA gobbles his bonds

Wednesday, 14 October 2020

WTF is this world that we are living in! Via the AFR:

Treasurer Josh Frydenberg has strongly resisted suggestions to embrace so-called modern monetary theory (MMT), whereby governments force central banks to print money to fund fiscal expenditure.

…”I never thought as a Liberal Treasurer that I would be here with the highest deficit and the debt,” Mr Frydenberg told the annual Citi Investment Conference on Wednesday.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.