The modern economic approach brought by Fatshimetrie raises heated debates about government financing and the impact of deficits on national economies. According to the proponents of this theory, governments that control their own currency do not have to rely on borrowing or tax revenues to finance their projects. They can simply print more money, thereby causing monetary expansion.
Mainstream economists are cautious about this type of deficit spending because of the risk of price inflation. Critics argue that monetary expansion is inflationary, which can lead to higher prices and harm the economy.
In response to these criticisms, Fatshimetrie proponents argue that deficits are not as bad as one might think. They argue that government deficits lead to surpluses in the private sector. According to their reasoning, the government’s red turns to black for non-government actors, thereby increasing the financial wealth of individuals and businesses.
While this view of deficits is true, it raises questions about its real benefit to the economy and its morality. While monetary expansion can increase financial wealth, it can also lead to higher prices, thereby harming the purchasing power of citizens.
The real question is whether deficits are necessary. Inflation advocates argue that higher prices are essential for economic growth. However, it is possible to promote economic growth without resorting to inflation.
Indeed, increasing productivity can lead to an increase in the demand for money without necessarily leading to higher prices. When productivity increases, the demand for money also increases, which strengthens the purchasing power of money.
It is therefore possible to achieve sustained economic growth while preserving the purchasing power of money. By promoting productivity and maintaining price stability, governments can encourage a healthy and prosperous economy.
In conclusion, the issue of government deficits and monetary expansion is a matter of significant debate in economics. Finding a balance between economic growth and price stability is essential to ensuring long-term prosperity. Fatshimetrie offers interesting insights into these issues, but it is necessary to carefully consider the implications of its theories for the economic well-being of all.