Starting today, I am going to be posting one part of the MMT primer per day, encouraging, hopefully, some fun discussion. I will lay out what's important in the thread. As the title says, this part of the primer focuses on the bare basics of macro accounting.
MMP Blog 2: THE BASICS OF MACRO ACCOUNTING
Key points:
* One's financial asset is another's financial liability
* Net private financial wealth equals public debt
* Rest of world debts are domestic financial assets
* One sector's deficit (domestic government, for example) equals another sectors surplus (domestic private sector.)
Once you understand that one's asset is another's liability, and that one sector's deficit equals another sectors surplus, you begin to see deficits differently.
MMP Blog 2: THE BASICS OF MACRO ACCOUNTING
Key points:
* One's financial asset is another's financial liability
* Net private financial wealth equals public debt
* Rest of world debts are domestic financial assets
* One sector's deficit (domestic government, for example) equals another sectors surplus (domestic private sector.)
Once you understand that one's asset is another's liability, and that one sector's deficit equals another sectors surplus, you begin to see deficits differently.
