| December 7 2020 | Modern Money Theory: Week5 | Back Next |
In times of slack (high unemployment, low capacity utilization), ...
... UBI can support aggregate demand by providing extra capacity for consumption spending
Just like other fiscal stimulus measures
But when slack is gone (full employment, high capacity utilization), ...
... may result in excess monetary demand for the economy's resources, ...
... setting grounds for inflationary pressures
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