New Economic Perspectives has an article that answers the question JAPAN DOES MMT? Whether you are for MMT or against it, the answer might surprise you.

Not that the size of the deficit—by itself—is important. What is important is whether government budget policy helps in the pursuit of the public and private interests. The deficit will always adjust to be “just the right size” to balance the other two sectoral balances. But that equality can be consistent with any growth rate—including a rate that is too low (deflationary) or too high (inflationary).

You’ll have to read the article to see the answer to the original question.

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