114,614 views
25 votes
25 votes
What is meant by functional finance?

User Michael Dimmitt
by
3.0k points

1 Answer

10 votes
10 votes

Answer:

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

User Dliix
by
2.6k points