Functional Finance

Functional Finance is a heterodox macroeconomic theory developed by Abba Lerner in the course of World War II that seeks to get rid of economic insecurity by way of government intervention in the economy. Functional finance is usually an economic theory planned by Abba G. Lerner, based upon effective demand ideas and chartalism. It states of which government should finance itself in order to meet explicit goals, for instance taming the enterprise cycle, achieving entire employment, ensuring increase, and low inflation.