I have a graduate degree in applied economics/econometrics and an MBA with a concentration in economics.
AMA.
>Government's are not like households.
Yup.
>They can't run out of money.
As long as you're a western capitalist market country, nope. Just look at how the Fed extended (by some estimates) upwards of 50x the US real GDP to financial institutions. I personally don't believe it's that much, but whatever.
You might ask, where is the inflation? There is none because of liquidity preference. Financial institutions are holding on to financial capital instead of circulating it in the economy or investing.
>They can run budget deficits indefinitely.
Yes. The only problem would be, say, if Russia or China made some kind of commodity back currency to challenge the USD/Euro. Perhaps an oil/rare-earth metal backed one?
>Full employment is easily achievable.
What is full employment anyways? Have you ever taken a look at what constitutes employment? Go to the BLS's website and check.
>Last week, did you do any work for (either) pay (or profit)?
So, did you walk your m8's dog for $5? Employed. Also, they do statistical sampling to determine the unemployment rate. Also which unemployment measure? U-3 is standard. What about U-5 or U-6?
I personally believe that we are always at full employment because if you won't work for the prevailing market wage (minimum), then you are choosing not to work. Therefore, voluntary unemployment.
This whole discussion has been done so many times though, it's mind-numbing at this point. But, yes, the government can create jobs through government investment in the economy. Government spending is also included in the GDP.
>Hyperinflation is a meme for meme governments.
Yes. But, there is a wage price spiral that will happen eventually given that business and financial investing in the economy is happening, consumers are spending, etc. As long as there is an active Federal Reserve this shouldn't be a problem.