It's only natural to wonder, amid mind-bogglingly large amounts of government spending to fight against a coronavirus-induced recession: how will it all be funded?
Such fear is unnecessary, but the answer to the question of how we are going to fund all this spending is orders of magnitude more complicated than in the past. But that’s not to say the Reserve has no role to play. Indeed, having exhausted its traditional method of stimulating the economy, the Reserve has been stepping up to the plate with more exotic methods to boost the economy, including by buying government bonds.
To whom, in such a situation, do taxpayers ultimately owe the money? Themselves? The answer is: well, yes . The former camp call themselves "modern monetary theorists" and argue any country with its own currency can always simply expand its money supply to do anything it wants to boost the welfare of its people.
As things stand, the way we are funding the response to this crisis, with the government borrowing money from the private sector and only having the central bank step in to buy bonds in the secondary market, can be expected to keep some discipline on government spending.
Jess_Irvine History of Australian government debt. It's fine.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NSW Minister Don Harwin apologises for relocating to Central Coast house during pandemicNSW Police Commissioner Mick Fuller has warned the Minister he would be fined $1000 if his excuse didn't 'cut the mustard'. LisaVisentin All is forgiven. You're a politician. What else can we expect? LisaVisentin Beat up. LisaVisentin Gross hypocrisy here!
Source: smh - 🏆 6. / 80 Read more »
How to minimise risk of catching COVID-19 at the supermarketYou don't need to worry about wearing gloves or wiping down trolleys in the supermarket. You just need to follow these simple steps FFS you can't get it except if pple breath on you or sneeze on you and with only 6,000 cases in the whole country why are we locked down like criminals Screw you! I will wear mask and gloves and treat every surface and every person like they can kill me. You are more likely to catch it by going to the supermarket and passing another customer who is infected and may not know. Hand hygiene going in and coming out of the supermarket and as you get into your car will protect you. Going in with your nose and mouth exposed is stupid.
Source: theage - 🏆 8. / 77 Read more »
How to minimise risk of catching COVID-19 at the supermarketSome simple steps when undertaking the number one reason for leaving the home right now - grocery shopping | sarzberry sarzberry Funny how it's not exercise, lol. sarzberry Thanks for telling people to not get home delivery. That’s for the elderly, disabled, immune compromised and those in mandated quarantine. sarzberry This is important too
Source: smh - 🏆 6. / 80 Read more »
Inside Centrelink, the coronavirus debt 'pause' is causing confusionCentrelink debt recovery staff have been instructed to keep raising debts against people who have died and to undertake a range of debt recovery activities, leaked emails obtained by 7.30 reveal. That's gross if true, and I'm heartless
Source: abcnews - 🏆 5. / 83 Read more »
'Alarming' rise in online gambling has experts worriedA jump in online gambling coupled with an increase in alcohol sales has experts worried they will see a significant lift in harm caused to Australians. Folks really do deserve what they get. If they’re getting gov handouts take it off them What are the odds of that.......
Source: smh - 🏆 6. / 80 Read more »
What do you do if someone shows coronavirus symptoms at work?The Prime Minister says he wants everyone to follow these seven steps if someone at work is worried they have COVID-19. Is this a trick question ? What a joke, a fear of spiders will activate cov-19, the boss yelling and screaming at everyone can cause the whole office to test positive. Call the new leaders of Australia the CCP and they will come and take them away in a van, never to be seen again?
Source: abcnews - 🏆 5. / 83 Read more »