Australia is drowning in public debt, but what if we never have to pay it off?

The kind of government spending it's taking to keep Australia afloat is pushing us into an unprecedented deficit.

But there's an emerging school of economic thought whose proponents advise us to relax and forget about it.

Modern Monetary theorists argue public debt may not actually exist, and governments can instead spend as much as they like.

So how does the theory work?

And why wouldn't lifting spending restrictions on governments create chaos and hyperinflation?

Today on The Signal we're speaking to one of the founders of Modern Monetary Theory, and learning how it might apply to our coronavirus crisis.

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Emeritus Professor Bill Mitchell, Chair in Economics and Director of the Centre of Full Employment and Equity, University of Newcastle