Functional finance

Functional finance is a way of understanding how money works in an economy. It believes that the way money is used in an economy should be based on what is the most functional or helpful in helping the economy reach the best outcome. This means that governments should be using the right tools in the right way to help the economy. For example, if the economy needs to be stimulated, the government can use different methods, such as tax cuts or increased government spending, to help the economy.