Macro N Cheese

**If you’d like to discuss this episode with friends and comrades, join our Macro ‘n Chill listening party on Tuesday evening at 8 ET/5 PT. For the Zoom registration link, go to realprogressives.org/rp-events-calendar/Understanding how monetary sovereign governments create and spend money means looking at the Treasury department and the central bank or, in the US, the Federal Reserve.Economist Eric Tymoigne explains two approaches to understanding the relationship: the consolidated and the collaborative, or cooperative, version of the Treasury and the Fed.The consolidated approach merges the Fed and the Treasury into one entity and analyzes the implications of this merger on public finance. It emphasizes that taxes and government securities don’t fund the government, but rather, the government spends by crediting accounts. (This comes as no surprise to MMTers.)The consolidated approach also highlights the importance of injecting reserves into the economy before taxes can be collected or government securities