Analyse @garciabanchs's tweets
@garciabanchs
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@StephanieKelton Don't agree.
Banks may also benefit from fiscal deficits, as a net injection of base money can be used by them to purchase interest earning govt bonds (generating income).
Banks don't like deficits because they believe deficits cause inflation (capital losses in real terms).
Banks may also benefit from fiscal deficits, as a net injection of base money can be used by them to purchase interest earning govt bonds (generating income).
Banks don't like deficits because they believe deficits cause inflation (capital losses in real terms).