MMT recognizes that bond sales by sovereign government are really part of monetary policy operations. While this gets a bit technical, the operational purpose of such bond sales is to help the central bank hit its overnight interest rate target (called the fed funds rate in the US). Sales of treasury bonds reduce bank reserves and are used to remove excess reserves that would place downward pressure on overnight rates. Purchases of bonds (called an open market purchase) by the Fed add reserves to the banking system, prevent overnight rates from rising. Hence, the Fed and Treasury cooperate using bond sales/bond purchases to enable the Fed to keep the fed funds rate on target.*2
Of particular importance to Mitchell, a leading labor economist, is that governments face no FINANCIAL constraint in regard to supporting policies that generate full employment (...). True, we might well face REAL RESOURCE constraints, but Mitchell argues that this is the constraint that should govern policy-making decisions, as opposed to some fictionalized financial constraint.
When government sells bonds, banks buy them by offering reserves they hold at the central bank. The central bank debits the buying bank’s reserve deposits and credits the bank’s account with treasury securities. Rather than seeing this as borrowing by treasury, it is more akin to shifting deposits out of a checking account and into a saving account in order to earn more interest. And, indeed, treasury securities really are nothing more than a saving account at the Fed that pay more interest than do reserve deposits (bank “checking accounts”) at the Fed.
- 作者: William Mitchell,Joan Muysken
- 出版社/メーカー: Edward Elgar Pub
- 発売日: 2008/05/30
- メディア: ハードカバー