Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days. See how you go with the following six questions. Your results are only known to you and no records are retained.
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Full employment abandoned: shifting sands and policy failures
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- Fiscal Sustainability Teach-In
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- Warren Mosler
- Peter Martin - The Age
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- Bruce McFarling
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About Q3, is “stock of money” and the amount of medium of exchange the same thing so that they are equal to currency plus demand deposits?
The way the system is set up now is all NEW medium of exchange demand deposits created from debt whether private debt or gov’t debt?
Meh, 20%
Perhaps I am overlooking the importance of key words, such as ‘can always’ and ‘domestic’ in question 2. I am looking forward to seeing the reasoning behind #4. It is kind of a trick/awkwardly worded question given the answer.
Alex, I don’t think #4 is a trick question. The thing that gets me is I rarely ever get all 5 questions right, I probably average around 3 but I always get the Premium question correct.
I only got the premium question right, I hope I answered true for the right reason.
A sovereign national government cannot generate full employment without taxation.
It s taxation what gives the state currency its value, whithout it no one would accept it as a payment for goods and services. By levying a tax the government creates 100 percent of unemployment first, then the government has to spend so people can pay their taxes, this creates employment.
Also puzzled by number 4. If it is true, it follows that the lower the tax revenue, the less government can spend. If government spending is not revenue-constrained in the first place, how can either be true? They would only be true on a gold standard or currency peg.