KV Tweet Printed money can be an investment, as it creates demand, which produces more jobs, which means more taxes are collected, and then the govt gets its money back. Win, win! The British government has never paid off the £1,200,000 loan that created the Bank of England in 1694. In exchange it gave the merchants who provided the money the exclusive right to print banknotes against this debt, giving birth to the central bank and much of the architecture behind the world’s financial system. Today, as policymakers promise to do “whatever it takes” to prop up their economies in the face of coronavirus, central banks are facing calls to print money to finance government spending directly Recent QE programmes, in fact, look increasingly likely to become permanent. Central bankers were
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Matias Vernengo writes Elon Musk (& Vivek Ramaswamy) on hardship, because he knows so much about it
Lars Pålsson Syll writes Klas Eklunds ‘Vår ekonomi’ — lärobok med stora brister
New Economics Foundation writes We need more than a tax on the super rich to deliver climate and economic justice
Robert Vienneau writes Profits Not Explained By Merit, Increased Risk, Increased Ability To Compete, Etc.
KV Tweet
Printed money can be an investment, as it creates demand, which produces more jobs, which means more taxes are collected, and then the govt gets its money back.
Win, win!
The British government has never paid off the £1,200,000 loan that created the Bank of England in 1694. In exchange it gave the merchants who provided the money the exclusive right to print banknotes against this debt, giving birth to the central bank and much of the architecture behind the world’s financial system. Today, as policymakers promise to do “whatever it takes” to prop up their economies in the face of coronavirus, central banks are facing calls to print money to finance government spending directly
Recent QE programmes, in fact, look increasingly likely to become permanent. Central bankers were unable to complete a much-discussed programme of “normalising” monetary policy between the financial crisis and today’s crash. They are not going to be able to do so any time soon. The scale of previous schemes means the Bank of Japan — which holds government bonds worth more than 100 per cent of Japanese national income — may never be able fully to unwind its purchases
FT