Professor Keen says.... worries about huge government deficits were overblown.
"The Government is not like a household. A government is like a bank. And a government running a balanced budget is like a bank that simply lends back as much as it gets in repayments, therefore the money supply never grows and without that, you don't have a growing economy," he said.
Professor Steven Keen, who was formerly an associate professor of economics at the University of Western Sydney and is now at Kingston University in London, says economists and governments around the world have their thinking completely wrong on the issue of budget deficits.
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