What problems are likely to occur if the federal government were to employ the functional finance budgetary philosophy?
The functional finance philosophy is very closely related to Keynesian ideas of economics and of governmental fiscal policy. This philosophy says that the government should not concern itself with issues of balanced budgets or with “living within its means” the way that ordinary people do. The government can print money and therefore is not subject to the same sorts of constraints that people experience. Therefore, this...
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