Modern Monetary Theory (MMT) Love it or Hate it - it's not going to go Away!, page-38

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    CafeCafe,

    Thanks for the reply.

    Their problem is low economic growth. Inflation and employment is not at their stated targets. If the central bank did nothing, borrowers would likely pay higher interest, or on the flip side, lenders might have to take a haircut. There could be a period of deflation and a deterioration in living standards. That would be hard, for both citizens and the ruling government.
 
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