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The Times

The spending splurge matters, regardless of what modern monetary theory says

  • Written by Ross Guest, Professor of Economics and National Senior Teaching Fellow, Griffith University
The spending splurge matters, regardless of what modern monetary theory saysShutterstock

The Australian government is planning to spend A$190 billion to support the economy in response to COVID-19, according to the latest Parliamentary Budget Office estimate.

The total impact of COVID-19 on the government’s net debt, including both revenue impacts (down, because of less activity) and spending impacts (up because of...

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