Fiscal Space

• Ability of a government to mobilize resources in pursuit of public purpose

        "... room in a government´s budget that allows it to provide resources for a
        desired purpose without jeopardizing the sustainability of its financial
        position or the stability of the economy."

A definition of fiscal space

• MMT emphasizes: To what extent can government purchase resources for sale in its own currency?

• Country may issue its own currency, but lack natural resources

  • That limits its government's fiscal space

  • However, government could still hire people with that currency and put them to work