Assertion: deficit spending | /r/HasProperty | necessary
Facets:
value: logically
type: DEGREE
value: to create the money supply
type: PURPOSE
value: as part of countercyclical fiscal policy
type: PURPOSE
Source sentences:
text: The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit (i.e., permanent deficit): The government should run deficits during recessions to compensate for the shortfall in aggregate demand, but should run surpluses in boom times so that there is no net deficit over an economic cycle (i.e., only run cyclical deficits and not structural deficits).
text: Some Post-Keynesian economists argue that deficit spending is necessary, either to create the money supply (Chartalism) or to satisfy demand for savings in excess of what can be satisfied by private investment.[citation needed]
text: Chartalists argue that deficit spending is logically necessary because, in their view, fiat money is created by deficit spending: fiat money cannot be collected in taxes before it is issued and spent; the amount of fiat money in circulation is exactly the government debt—money spent but not collected in taxes.