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Functional finance is an economic theory proposed by Abba P. Lerner, based on effective demand principles and chartalism. It states that government should finance itself to meet explicit goals, such as taming the business cycle, achieving full employment, ensuring growth, and low inflation. == Principles == The principal ideas behind functional finance can be summarized as:〔Edward J. Nell, Mathew Forstater, ''Reinventing functional finance: transformational growth and full employment'', ISBN 1-84542-220-1, Edward Elgar Publishing 2003〕 *Governments have to intervene in the national and global economy; they are not self-regulating. *The principal economic objective of the state should be to ensure a prosperous economy. *Money is a creature of the state; it has to be managed. *Fiscal policy should be directed in light of its impact on the economy, and the budget should be managed accordingly, that is, 'balancing revenue and spending' is not important; prosperity is important. *The amount and pace of government spending should be set in light of the desired level of activity, and taxes should be levied for their economic impact, rather than to raise revenue. *Principles of 'sound finance' apply to individuals. They make sense for individuals, households, businesses, and non-sovereign governments (such as cities and individual US states) but do not apply to the governments of sovereign states, capable of issuing money. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Functional finance」の詳細全文を読む スポンサード リンク
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