Duma Gqubule Columnist

A monetary sovereign government is one that issues its own currency. It taxes its population in the same currency. It issues debt that is denominated in its own currency. The fourth condition is that it does not fix its currency; it has a floating exchange rate, according to Fadhel Kaboub, a modern monetary theory (MMT) economist.

Technically, such a government cannot default on its debt. It has the policy space to achieve its macroeconomic policy objectives, the most important of which is the achievement of full employment. The only limit to state spending is inflation or the availability of real resources that can be purchased.   

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