"Reserve currency status does afford increased deficit-spending capacity."
Reserve currency is essentially a myth. It's just an artefact of double entry bookkeeping in banks.
There are lots of reserve currencies. Every floating rate currency held outside its native borders is "reserve". It's just somebody holding the money - aka savings.
Many countries do that for mercantile reasons to avoid a dutch disease at home. Norway is one, China is the main other.
"Piloting federal fiscal policy on MMT is akin to steering the plane to FL 100 and keeping an eye out for a stall"
It's just excess savings, which are automatically offset by a Job Guarantee. Basic accounting really.
Deficits are just an accounting residual causes by people choosing to save. For there to be a deficit at all somebody has to choose to hold the money. Or there won't be one.
> Every floating rate currency held outside its native borders is "reserve"
This is empirically false. Offshore currency holdings make offshore financing in your currency easier. That makes financing deficits less likely to produce domestic inflation.
Quantity and diversity of the offshore holders of one's currency matter. There is a qualitative difference between the U.S. dollar and Argentinian peso.
It isn't. It is accounting fact. Every currency held outside its borders is a foreigner saving that currency. That's all a reserve is.
Lots of people like to hold US dollars. Fewer Argentine pesos even within the country.
Actually having fewer people hold you currency makes it easier to run. You just make your budget in that currency balanced by increasing taxes. If you have lots of people saving your currency then let them - and accommodate the savings.
Reserve currency is essentially a myth. It's just an artefact of double entry bookkeeping in banks.
There are lots of reserve currencies. Every floating rate currency held outside its native borders is "reserve". It's just somebody holding the money - aka savings.
Many countries do that for mercantile reasons to avoid a dutch disease at home. Norway is one, China is the main other.
"Piloting federal fiscal policy on MMT is akin to steering the plane to FL 100 and keeping an eye out for a stall"
It's just excess savings, which are automatically offset by a Job Guarantee. Basic accounting really.
Deficits are just an accounting residual causes by people choosing to save. For there to be a deficit at all somebody has to choose to hold the money. Or there won't be one.