Qustions for Bill and Randy

If I understand Bill (Mitchell) and Randy (Wray) correctly, their generic
model of a monetary macroeconomy says that:

- There is no need to make a distinction between a government and a central
bank. Removing this distinction implies that the government can create money
as it likes, and spend it into existence. From this also follows that the
concept of the government borrowing from the central bank and being in debt
to it, is meaningless.

- Because the gvt. can create new money at will, there is no need for the
government to sell gvt. bonds.

- Money collected through taxation may in this model be considered to
be destroyed.

Have I got you right so far?

Cheers,

Trond
Received on Fri Jan 24 12:59:37 2003