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The Weekend Quiz – July 20-21, 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. For nations enjoying strong terms of trade (and external surplus), it is sensible for the government to run fiscal surpluses and accumulate them in a sovereign fund to create more space for non-inflationary spending in the future.

2. A sovereign national government, that is, one that issues its own floating currency faces no solvency risk with respect to the debt it issues.

3. It would be impossible for a central bank to directly purchase treasury debt to facilitate the national government's fiscal deficit while still targeting a positive short-term policy rate.

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    This Post Has 6 Comments
    1. Can you explain why question 2 is false please? I thought the whole point was that sovereign governments cannot run out of their own currency.

    2. How do I access previous blog posts and quizzes? sorry if that is a dumb question but I’m just a newbie to blogs.

      I’m reading Nomi Prins, Collusion, How Central Bankers Rigged the World, and will have a lot of questions about banking and what if anything MMT knowledge can do to help us recover control. I just found Bill’s Training talk in UK and am studying that for a presentation on MMT in September at our local Transition Towns group.

      I am looking for how MMT would work in a small exporting nation, which used to be a Welfare State until neoliberal economics infested the minds of the business, Treasury, and politicians. The very people who benefited from our free tertiary education ended it, but I will spare you the rave.

    3. Is there anyone else from NZ following Billy Blog and MMT? Would love to discuss how aspects of MMT would apply or not to NZ.

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