What is wrong with these kinds of analogies

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Politicians who express concern about the national debt or balancing the budget often rely on analogies of personal or household finances. According to Wray, Kelton, Molser, etc., these analogies makes no sense at all when discussing the finances of a sovereign (currency issuing) government. What is wrong with these kinds of analogies? How and why are the finances of a sovereign completely different from a household or business?

Reference no: EM133544003

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