Optimistic message from the economists “After Covid 19 , new Bretton Woods
MDS- C19 Staff , March 1 2021
The post-Covid 19 pandemic could well lead to a new economic era, with profound changes in the affected sectors but new opportunities.
It is highly probable that not all governments in Europe and the world have succeeded in their mission to reduce debts and unemployment.
Thanks to Covid 19, all barriers have been broken down. What was impossible yesterday, tomorrow will be possible.
Creating a vaccine in 10 months was an impossible mission just two years ago, yet pharmaceutical companies have done it. Researchers had been working for years on this "messenger RNA" technology and this crisis forced them to accelerate the movement, helped in this by the public authorities of the States, such as the USA with Moderna and Pfizer and the United Kingdom with Astrazeneca.
Telemedicine has become a part of everyday life and the boom in internet shopping has become a permanent feature of daily business, not only the usual leaders who have been buoyed up by this exceptional health crisis, but also small traders who had difficulty diving into this new economy and by the force of events have learned to swim, or even swim very well for some companies.
All the political parties are asking themselves the question "how to repay the debt", the answer is "how to manage the way out of the crisis… There is a new economic thinking, led by Stephanie Kelton with her MMT doctrine "Modern Monetary Theory", no more Smithet Friedman, according to her, it is necessary to change the whole software of economic thinking, there is no limit to debt. How to pay back MMT has the answer to everything. It is enough to erase the public debt. Money is the creation of public power. "There is no problem of deficits or financing," she asserts, "with Kelton, it is enough to reverse the order of things.
In the monetarist vision, the State is financed by taxes, which it redistributes in the form of expenditures. If it is in deficit, it is financed by the National Bank, which manages the supply of money in order to limit inflation. In the MMT world, the State sets an amount of expenditure, the Central Bank, which it controls, writes a check to it and the tax revenues resulting from economic growth return to the coffers of the State.
This is a probable and realistic scenario for countries with independent currencies such as the United States, Canada, the United Kingdom, Japan, which will be much more difficult for the Euro whose decisions are to be shared among 27 states because they do not have a monopoly of the currency, without a political union the Euro is doomed to failure.