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Business, 28.08.2019 04:00 troyjbabyjohnson

Why is functional finance difficult to implement?
1. financing the deficit often has offsetting effects, and the government doesn’t always know how its policies will affect the economy.
2. potential output is not a known quantity, and enacting spending and taxing policies is time consuming.
3. government debt can affect private spending, and taxing and spending can negatively affect other government goals. 4.
it is unknown whether the ricardian equivalence theorem is true.
5. the government cannot function without the popular vote, making policy difficult.

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Why is functional finance difficult to implement?
1. financing the deficit often has offsetti...

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