Should the government spend its way out of the doldrums?

This week we learnt that the government racked up its highest December budget deficit on record. In fact, there have only been a few months which were higher, and all during the throws of the COVID pandemic. So, does the government need to cut back on spending and give the country another dose of austerity? Or can it keep spending. Modern Monetary Theorists say a government with its own sovereign currency can keep spending so long as there are resources that can be put to productive use. Are they right? Frances Coppola is a financial writer, who knows from the inside the workings of banks and governments. She says she is a 90% advocate of MMT. So, is it the right answer for Britain right now?

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