Should we really care if Australian governments spend up big and generate massive deficits and debt for future generations? The question would seem rhetorical for those who spent their careers working in, or working towards, stable macro-fiscal environments.

A new view, however, pervades much of government and the financial community, which sees spending, deficits and inevitably debt securities as akin to money. The environment has changed as most major central banks periodically just conjure up more reserves (print money) in the face of economic shocks. Lucky for them market actors must hold some currency to transact and indeed pay taxes.