Modern Monetary Theory suggests that the only constraint on government spending is finite resources, such as labour or goods, the inflation of which can be tempered by raising taxes.
It embodies the type of artless thinking that dominates our self-congratulatory classes, who seek to overthrow systems by throwing out the baby, the bathwater and the whole bathtub.
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Michael Roddan is a Walkley Award-winning national correspondent based in Sydney. He is a former business and economics reporter for The Australian. Connect with Michael on Twitter. Email Michael at m.roddan@afr.com
