A country that floats its exchange rate can enjoy domestic policy independence and free capital flows. A country that pegs its exchange rate must choose to regulate capital flows or must abandon domestic policy independence.
MMP Blog #26: Sovereign Currency and Government Policy in the Open Economy Read More »
We will look to the frequent claim that the US is “special”—while it might be able to run persistent government deficits and trade deficits, other countries cannot.
MMP Blog #25: Currency Solvency and the Special Case of the US Dollar Read More »
Comments and responses on the Modern Money Primer Part 11.
MMP Blog #11 Responses Read More »
In this blog we will examine the implications of exchange regimes for our analysis.
MMP Blog #11: Modern Money Theory and Alternative Exchange Rate Regimes Read More »