Quote:
Originally Posted by GGG
The government could have increased taxation broadly as a means to fight inflation and then the measures could have been targeted more and rather than banks and bond holders getting the money the government would to pay down debt. That is the way MMT is supposed to work.
Whether that’s better or worse for the average person and whether it works is up in the air but they did have another choice.
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Politicians want to take credit for the spending that caused the inflation during the emergency, but they don't want to take the blame for the much higher taxes that would be required to fight it.
Easier to make the central bank do it and blame them if it doesn't work out.