“The fallacies of the neoclassical loanable funds view of interest rates and the related myths about fiscal sustainability and crowding out, would be seen to be nonsensical. Neoliberal narratives would be undercut. We could get on with having a rational and well-informed discussion about issues such as the appropriate role and size of the government within the economy; the appropriate design of more effective automatic stabilisers like the job guarantee; and how to plan and to pay for a rapid transition to a future of genuinely (ecologically) sustainable prosperity, free of the mistaken notion that our most pressing constraint is somehow a shortage of money, or an accelerating national debt.
Stop issuing monetary sovereign government debt securities. They are unnecessary. There is no compelling reason to issue them. They confuse people. They bias macroeconomic discourse, policy making and outcomes. They are an anachronism. They belong, alongside tally sticks, the gold standard, the London discount houses, and neoclassical macroeconomics, in the history books.”
