MMT

The idea that responsible fiscal policy involves matching plans for future taxes to projected day-to-day government spending, often called the golden rule, has a long history. As Shadow Chancellor Rachel Reeves recently did, people often express this idea by saying governments shouldn't plan to borrow to pay for current spending. There is a lot to discuss on how you should implement this golden rule (like what matching taxes to spending actually means), but here I want to focus on the principle behind.