If you’ve been following along you’ll know that I’ve justified (for myself) the intervention by the government into the affairs of the economy. Any such intervention will have a cost. The question for today is: how will these costs be funded? The options seem to be a tax levied on actors or actions in the economy, borrowing from actors within the economy, or simply creating money (e.g. printing new notes, though that is an archaic way of thinking about money in the modern age).
I believe that all three of these may have their place, and the goal is to explain in what circumstances and in what manner each should be used.
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