politicians in many countries, including the USA and the UK show ready, an often much-vaunted fiscal discipline and to increase public expenditure, regardless of the cash situation. Also, the Democrats in the United States have written to the with the Green New Deal on the flags, and follow the principles of Modern Monetary Theory (MMT), a new theory of money, the rates in today's times of low inflation and high unemployment, more spending, as a fundamentally desirable and necessary.

an expert explains the Modern Monetary Theory

supporters of the "black Zero", a balanced state budget, with this theory, so some of the problems. Economist Dirk Ehnts is started, the concerns of the critics and questions:

DW: are you in the camp of the Economists, the Modern Monetary Theory something New to offer have. But this theory is also a real need?

Dirk Ehnts: We currently have in the Eurozone, a period of relative high unemployment in some places, also in the EU as a Whole. The next recession comes surely sometime. So we need to think about how we employment can increase, and resources will be able to use currently unused. I don't think most of the labour factor, not necessarily to raw materials. The Person

Dr. Dirk Ehnts is at the chair for European Economics at Chemnitz University of technology and speaker of the Board of the Pufendorf-society for political Economy e. V.. Prior to that, he was a guest lecturer for Economics at the University of Economics and law and a visiting Professor at the Latin America Institute of the Free University in Berlin.

DW: What exactly is the fundamentally new approach of the of them supported modern monetary policy?

Ehnts: The new approach is that we understand the state's money as a tax credit. This means that the state is credit debt, only the amount of tax, the hold still in the possession of the house and business are located. The state is not allowed to reduce its debts to Zero, and he must also – and this is of course a difference to the 'Swabian housewife'. You should be wary of the logic of the Swabian housewife, who has to Finance their spending by income, equated with the state as a Creator of money in the location, what to spend, he brings the Central Bank into the game.

There are political reasons to let Inflation explode,

DW: If the state can at least potentially so-a lot of money digital to create, as he needs, which leads then inevitably to a spiral of debt – so it can see the critic of the new theory of money?

Ehnts: of course, I can understand the people who see the danger that the state spends too much money and hiring people who already have work, higher wages and these higher wages cause higher rates of inflation. But that would not be popular in the population, in particular among older people. These relate to a pension and want to advise not to have high inflation. And the would then vote immediately against the government. Therefore, there is politically no reason to overstimulate the game and to let Inflation explode.

DW: , The ECB and other Central banks have already caused a flood of money and move a piece along the new monetary policy – keyword "lax monetary policy, quantitative easing (QE)". Only the results of this policy are not necessarily what you call for. What would be in the case of MMT in a different way? Small Caps Champion: your 3 pillars for a successful wealth accumulation. Successfully and safely in addition to values invest. (Partner quote) Here is an exclusive free trial!

Ehnts: The ECB buys the banks government bonds, which banks can get credits on their accounts at the ECB, but this money could not lend directly to one of us – neither households nor companies, because the have no account with the Central Bank. The Problem is the weak demand for credit, and in such a Situation, the state must ensure that state contracts and more demand arises. If the state spends more money, it creates more employment (in the direction of a Green New Deal, so ecologically meaningful investments). This also means more income – so money, which can spend the people for the purchase of goods, and thus the production will be stimulated.

Also in Germany, we had to have in 2018 is still a under-employment, with approximately six million people, so even here we are not still long for a real full employment and can hire people.

DW: In countries without their own currency is not MMT but applicable, and how big is the Problem in the case of debt in foreign currency?

Ehnts: countries that do not have their own currency, need to borrow only in dollars from international investors before you spend anything, or you need to make a taxation. The Same is true for the municipal level and the provincial level. Euro / US Dollar (EUR/USD) 1,0951 USD +0,0002 (+0,02%) OTC

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debt in foreign currency is a big negative factor. Now, one could say, of course, the Euro is a foreign currency, from our point of view; ultimately, however, we are in the Euro-zone 'too-big-to-fail', i.e., the ECB, Germany will not hang. In this respect, we don't really have a risk of default.

Previous theories of the Economics of reform are not in need of

DW: you See the danger that MMT too much Power to governments and the competences of Central banks, as our Supreme guardian of the currency, are trimmed with long-term goals?

Ehnts: This is a question of the political consequences. It could be that government spending lead to more resources are used. On the other hand, I believe that in the current Situation, where we need a Green New Deal – so less resources to use – the people have a choice. You do not need to ask whether there is enough expenditure can be made, in order to allow the ecological upheaval. The company does not need to ask, of course, continue to where you get the money for this herb, the state but.

DW: How do you rate at the moment, the chances of MMT at the end will prevail against conventional monetary policy, even in the face of a not insignificant number of critics of the new theory of money? Stock Selection Europe - The trading system for the DAX, Euro Stoxx 50 & co. are Now testing exclusive 30 days free of charge!

Ehnts: there are Usually cycles of 30 to 40 years in the Economics, and the neoliberal theory is predominantly since the 70s to the 80s. It is clear that there are also many myths that have led to the present problems, e.g., the myth that the Central Bank controls the money supply or the inflation rate mastering. We clearly see that for this to work.

heard of this series, the myth that the market regulates everything yourself and the state must pull back and then everything works, it is profit maximizing over all and the common good ignored. But all of that is in need of reform, and I believe that we have in this debate has the better arguments. I therefore hope that good ideas will prevail in the end. This may require patience, but it should not take so long.

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*The article "expert: A flood of money by the Central banks is released in our lives better" is from Deutsche Welle. Contact with the executives here.

/Deutsche Welle Date Of Update: 10 February 2020, 14:00