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Excellent summary of monetary operations and how they are conducted. The Bank of England has just announced it will now do exactly what I suggested above: type funds into the UK government’s account and give it a "ways and means" overdraft, just to keep the books in order. People are beginning to understand how the system works. They are beginning to understand that governments in monetary systems such as our own can never run out of their own currencies. They are beginning to get modern monetary theory (MMT). Meanwhile, the RBA Board announced a new target for the cash rate, and at the very same meeting announced a policy which guaranteed it would miss its target on the low side. Hasn’t anyone noticed?... Is the BoE the only central bank that finally gets this?Independent
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Mike Norman considers the following as important: MMT
This could be interesting, too:
Excellent summary of monetary operations and how they are conducted. The Bank of England has just announced it will now do exactly what I suggested above: type funds into the UK government’s account and give it a "ways and means" overdraft, just to keep the books in order. People are beginning to understand how the system works. They are beginning to understand that governments in monetary systems such as our own can never run out of their own currencies. They are beginning to get modern monetary theory (MMT). Meanwhile, the RBA Board announced a new target for the cash rate, and at the very same meeting announced a policy which guaranteed it would miss its target on the low side. Hasn’t anyone noticed?... Is the BoE the only central bank that finally gets this?Independent
Topics:
Mike Norman considers the following as important: MMT
This could be interesting, too:
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The Bank of England has just announced it will now do exactly what I suggested above: type funds into the UK government’s account and give it a "ways and means" overdraft, just to keep the books in order.
People are beginning to understand how the system works. They are beginning to understand that governments in monetary systems such as our own can never run out of their own currencies. They are beginning to get modern monetary theory (MMT).
Meanwhile, the RBA Board announced a new target for the cash rate, and at the very same meeting announced a policy which guaranteed it would miss its target on the low side.
Hasn’t anyone noticed?...Is the BoE the only central bank that finally gets this?
Independent Australia
The Reserve Bank has got it wrong: Embrace modern monetary theory
Stephen Hail