Creating lots of new money is supposed to produce runaway inflation. The longer that it doesn’t happen, the more this branch of economics appears to have a point.
Modern Monetary Theory allows governments more freedom to run deficits, freedom the Australian government might need.
Canadian bank notes are seen in this 2017 photo. Ottawa finances deficit spending by borrowing money. Twenty per cent of the money is borrowed from the Bank of Canada. In other words, the government borrows that money from itself.
THE CANADIAN PRESS/Adrian Wyld