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The Weekend Quiz – April 27-28, 2019

Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.

1. The Australian Treasury equates the Non-Accelerating Inflation Rate of Unemployment (NAIRU) with full employment and uses this to calibrate their structural deficit estimates. Accordingly, the structural deficits reported will typically be:




2. In a fiat monetary system, the absence of currency convertibility means:




3. When a sovereign government issues debt it logically:






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    This Post Has 6 Comments
    1. 1 & 2 correct. Number 3 incorrect. I’m glad I got Number 2 right – some progress!
      (“Cos’ I’m the Taxman, whoa yeh, I’m the Taxman” (c/o John & Paul).)

    2. Isn’t currency debt?
      My £10 says ‘I promise to pay” on it. When the government issues this, someone gets £10.

      I read it as that, maybe you should have said ‘When the government sells bonds” – I’d understand it then.

    3. “Isn’t currency debt?
      My £10 says ‘I promise to pay” on it. When the government issues this, someone gets £10.”

      Take your ten quid back to the Bank of England and ask then to fulfill the promise and all you’ll get is another ten pound note.

      It’s hardly credit if you can roll the obligation over in perpetuity and never have to redeem it with something of value like gold.

      That’s how a fiat currency works.

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