Monetary Sovereignty and Domestic Economic Problems

• Counter-example: U.S. response to COVID-19 crisis

• United States faced two major challenges:

  • Had had to assemble real resources needed to contain pandemic

    • Required spending on massive scale

  • Had to cushion impact of fall in regular economic activity

    • Income support

      • Extend unemployment benefits

      • Grants to businesses

    • More generally, had to support "aggregate demand"