Covid-19 had caused drastic increases in government spending and government debt across the globe in an effort to stimulate aggregate demand the economies as a whole. Recently there is a growing interest in the new theory called the Modern Monetary Theory (MMT). The theory explains that rising budget deficits are good economies as long as increased government spending does not lead to inflation. Furthermore, this theory promotes rising government debt as means of supporting government spending. As noted by Stephanie Kelton in her book “The Deficit Myth”, governments can fund this spending and servicing of debt through printing money. As such, all the spending could, in principle, be financed via the creation of cash rather than taxes. Taxes may serve other purposes such as providing public services. In relation to the above, use the multiplier model (or other models such as the IS-LM and AS-AD models) and critically analyse the effectiveness of MMT in South Africa. Furthermore, give your own policy recommendations of how the South African economy can grow post the COVID-19 pandemic.
With particular reference to understanding the mechanism behind Iran’s nuclear negotiations, Post-Colonialism leads me to argue that, by virtue of Nuclear Non-Proliferation Treaty being an instrument of western diplomacy; Iran has been reluctant to come to the negotiating table out of fear. The Iranian nuclear project benefited from the legitimacy and national patriotism of the common Iranian; thus international regulatory institutions are largely seen as the product of interstate diplomacy dominated by Western great powers” (Barkawi & Laffey 2006, p331). Devlen’s (2010) analysis on the previous Iranian nuclear negotiation reveals that the Iranians would like to negotiate a settlement but they have a sceptical and conflictual view of the United States, because they feared that if they showed the willingness to negotiate, the United States could exploit it to its advantage. One could argue that, Iranian foreign policy is dominated by the belief that Nuclear Weapon States seek to curtail its right to nuclear determination; a continuation to what it perceives as Western oppression and interference. The entrenched nature of the Non-Proliferation Treaty, coupled with the fact Nuclear Weapons States have sought to maintain their monopoly on nuclear proliferation is indicative of an international community based on American dominance which maintains “the logic of colonial violence, oppression, and inequality as represented by the characteristic clash between nuclear haves and nuclear have-not” (Biswas 2001, Peterson 2010). Like Ahmadinejad proclaimed the end to US hegemony and the end of Western oppression, his defiance to negotiate a nuclear resolution can be likened to the battle against nuclear apartheid or perhaps the fear of losing its sovereignty by means of Western invasion. One begins to sense that the historical dialogue between Iran and the United States has morphed itself into a struggle for power and recognition; and arguably the Iran nuclear ambition acts a tool for recognition through defiance. Through Nietzsche’s On the Genealogy of Morality, we know that the interpretation and imposed values on the world is not void of history; and their origins are often brutal and far removed from the values which they produce. For example, the value of good is measured on that which the powerful nobles applied to himself in contrast to the common man. In other words, the value of the master depended on that which is perceived to be ‘good’, as opposed to the slave which connotes that which is ‘bad’ and it is the tragedy of distance, between the high-born versus the low-born that creates a sense of superiority over inferiority; thus leading to the ressentiment of the superior (Pearson & Diethe, 2006). Scheler (1972 p45-46).) defines ressentiment “as a self-poisoning of the mind which has definite causes and consequences. The feeling of ressentiment manifests itself in the form of systematic repression of certain emotions and affect, which when projected lead to conflict in the quest for revenge”. On this basis, it could be argued that an a>GET ANSWER