Balanced Budget and Money Creation in the USA – Quote by James M. Buchanan

„I have long been in favor of a balanced budget restriction at the level of the federal government of the United States. Because the federal government has money-creating powers it can, in fact, be very damaging if it runs a series of budget deficits. With the state government in the United States, they don't have money-creating powers. The automatic discipline imposed by the fact that they are in a common monetary unit and don't have control over the money power means that the balanced budget restriction is less needed.“

James M. BuchananJames M. Buchanan explains the importance of balanced budgets and money-creating powers for US federal and state governments.
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James M. Buchanan was an American economist and Nobel laureate, known for his work on public choice theory.

Commentary by James M. Buchanan on the significance of balanced budgets and money-creating powers in the USA.


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James M. Buchanan quote about balanced budgets and money creation in the United States

James M. Buchanan (1919–2013) was an American economist best known for developing public choice theory, analyzing political behavior using economic principles. He was awarded the Nobel Prize in Economic Sciences in 1986.

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