The gov spends by creating a bond out of nothing, SELLING it not borrowing (in a traditional sense) and then spends. The gov could create as many bonds as it wants with zero coupons and then sell them to the Reserve Bank to save all the money it wants in our currency. Why would we want to save when the governments role is to spend for us to save (in our own currency)?
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- Bowen says coalition given up on budget repair
Bowen says coalition given up on budget repair, page-58
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